13 Industrial Estate Requested to Take Direct Investment Rp 250 Trillion

By : Arya Mandala And Aldi Firhand. A | Thursday, February 01 2018 - 19:21 IWST

Minister of Industry Airlangga Hartanto (Center)
Minister of Industry Airlangga Hartanto (Center)

INDUSTRY.co.id - Jakarta, the Government is targeting to attract direct investment of Rp 250.7 trillion in 2018.

This target is charged to 13 industrial estates in Indonesia.

The target was delivered by Minister of Industry, Airlangga Hartarto on several occasions.

According to him, the government has facilitated the development of a number of integrated industrial areas with facilities that support to facilitate the investors to develop their business in the country.

"Industrial development is also one of the government's efforts to reduce domestic economic inequality and realize Indonesia centric," he said.

The Minister of Airlangga targets, by 2018, the investment value to be drawn from 13 industrial estates will reach Rp250.7 trillion.

The 13 industrial zones (KI), namely KI Morowali, Central Sulawesi, KI or Special Economic Zone (KEK) Sei Mangkei, North Sumatra, KI Bantaeng, South Sulawesi, KI JIIPE Gresik, East Java, KI Kendal, Central Java, and KI Wilmar Serang, Banten.

Furthermore, KI Dumai, Riau, KI Konawe, Southeast Sulawesi, KI / KEK Palu, Central Sulawesi, KI / KEK Bitung, North Sulawesi, KI Ketapang, West Kalimantan, KI / KEK Lhokseumawe, Aceh, and KI Tanjung Buton, Riau.

"The government has provided ease of investing in industrial areas, among others through the provision of fiscal and non-fiscal incentives and the formation of task force for the provision of gas, electricity, water, human resources, land, spatial, and so on," he explained.

Meanwhile, according to Minister of Industry, the investment projection in the overall manufacturing industry this year is Rp352 trillion.

"With investment in the industrial sector, creating new jobs and multiplier effects such as increased value added and foreign exchange earnings from exports. Therefore, the industry becomes the main support of the target of economic growth, "he explained.

The Ministry of Industry noted that non-oil and gas industry exports until November of 2017 amounted to USD114.67 billion, up 14.25 percent compared to the same period in 2016 of about USD100.36 billion.

The export of non-oil and gas processing industry contributed up to 74.51 percent of total national exports until November 2017 which reached USD153.90 billion.

"To boost exports, ease of market access is needed," Airlangga said.

In this case, the government continues to negotiate to agree on comprehensive economic cooperation agreements with Europe, the United States and Australia.

"If the barriers are reduced, such as export duty, the performance of our textile and footwear industries will go up," he said.

Minister of Industry said that currently some industries are growing above economic growth. For example, the food and beverage industry, the chemical industry, the downstream steel industry, the pulp and paper industry, and the jewelry industry.

"The most important is supported by the availability of raw materials and competitive energy prices," he said.

Furthermore, in order to boost national manufacturing competitiveness, another key thing that Ministry of Industry is trying to do is to facilitate the provision of fiscal incentives to industries that develop vocational education and build innovation centers in Indonesia.

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