Semester I-2018, Industry Investment Rp.122 Trillion

By : Ridwan And Aldi Firhand. A | Monday, August 27 2018 - 22:37 IWST

Menteri Perindustrian Airlangga Hartarto (Foto: Dok. Kemenperin)
Menteri Perindustrian Airlangga Hartarto (Foto: Dok. Kemenperin) - Jakarta, the industrial sector contributed significantly to the growth of investment value in the first semester of 2018. The amount of investment from the manufacturing group reached Rp122 trillion through 10,049 projects or contributed 33.6 percent of the total investment value of Rp361.6 trillion.

"We actively encourage the entry of investment in the industrial sector. Through the construction of factories, of course, brings a multiplier effect on the national economy such as an increase in the added value of domestic raw materials, employment, and foreign exchange earnings," said Industry Minister Airlangga Hartarto in Jakarta on Monday ( 27/8/2018).

The Ministry of Industry noted that throughout the first half of 2018, domestic investment (PMDN) from the industrial sector was at Rp.46.2 trillion. Meanwhile, foreign investment (PMA) from the industrial sector is able to penetrate up to USD5.6 billion or IDR75.8 trillion.

The highest PMDN contributions from the manufacturing sector, including the food industry by 47.50 percent (worth Rp21.9 trillion), the chemical and pharmaceutical industries 14.04 percent (Rp6.4 trillion), as well as the metal, machinery and electronics industries 12, 70 percent (Rp. 5.8 trillion).

Furthermore, the highest FDI contributions were from the manufacturing sector, which included metal, machinery and electronics industries at 39.69 percent (USD2.2 billion), followed by the chemical and pharmaceutical industries 18.84 percent (USD1.1 billion), and the food industry. 10.41 percent (USD586 million).

According to the Minister of Industry, the injection of investor funds is a force for the national economy, moreover the industry is the main driver of the national economic growth target.

"We also believe that this investment can strengthen the industrial structure in the country and can be a substitute for imported raw materials," he explained.

Therefore, the government continues to be determined to create a conducive business climate that spurs increased investment in Indonesia, whether it is a new form of investment or expansion of business or expansion.

"The government has now issued several policies to facilitate the entry of investments both from within and outside the country," said Airlangga.

These strategic steps include optimizing the utilization of fiscal facilities such as tax holidays, tax allowances, and exemption from import duties on capital goods or raw materials.

"In fact, the Ministry of Industry has proposed a super deductible tax scheme for industries that carry out innovation and vocational activities," he said.

Then, the government improved the licensing procedures both at the central and regional levels. "Currently, licensing procedures have been prepared by using the mechanism of Online Single Submission (OSS)," he added.

In addition, the Ministry of Industry supports the acceleration of increasing the competence of industrial human resources through training programs and vocational education.

The Minister of Industry added, the effort to attract foreign investment became one of the 10 steps of national priority in entering the fourth industrial revolution era according to the road map Making Indonesia 4.0. This can encourage technology transfer to local companies.

"To increase investment, Indonesia will actively engage global manufacturing companies, choose 100 of the world's top manufacturing companies as prime candidates and offer attractive incentives, and dialogue with foreign governments for national-level collaboration," he explained.

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