The Current Industrial Development Policy Indonesia is On the Tight Track

By : Nata Kesuma | Sunday, December 03 2023 - 21:14 IWST

Industri Tekstil
Industri Tekstil

INDUSTRY.co.id - The industrial sector in Indonesia plays a vital role as the main support for economic growth and job creation. Therefore, policies are needed that are oriented to support increased performance and competitiveness, thereby maintaining the viability and sustainability of the industrial sector.

"Current industrial development policy is on the right track. "This is shown in a number of positive achievements in the performance of the national manufacturing industry," said Minister of Industry Agus Gumiwang Kartasasmita in Jakarta, Friday (1/12).

Referring to data from the Central Statistics Agency (BPS), the processing industry sector experienced growth of 5.20 percent (y-on-y) in the third quarter of 2023, which exceeds economic growth of 4.94 percent in the same period. This means that the manufacturing sector in the country is still thriving amidst unstable global economic conditions.

The Minister of Industry emphasized that in order to further stimulate the performance of the national manufacturing industry, one of the things that needs to be considered is the importance of maintaining the industrial sector to adhere to the principles of green industry which focuses on resource efficiency and effectiveness, environmental functions and benefits to society.

"Consistency with these principles will not only advance the industrial sector, but can also guarantee environmental health and social welfare for future generations," he said.

It should be noted that manufacturing industry activities in the country are increasingly active even in the midst of unstable global economic pressures. This is indicated by the achievement of the Indonesian Manufacturing Purchasing Manager's Index (PMI) released by S&P Global, which in November 2023 strengthened to level 51.7 or an increase of 0.2 points from October 2023 which was in position 51.5.

Where the Indonesian manufacturing PMI in November 2023 will be able to exceed the ASEAN manufacturing PMI (50.0), as well as ASEAN countries such as Thailand (47.6), Malaysia (47.9), Vietnam (47.3), and Myanmar (48 ,1). Apart from that, it is also higher than the PMI of China (50.7), Eurozone (43.8), Germany (42.3), Japan (48.3), Netherlands (44.9), South Korea (50.0 ), Taiwan (48.3), United Kingdom (46.7), and United States (49.4) According to PMI data, the expansion of Indonesia's manufacturing sector will last until the fourth quarter - 2023.

The increase in production is supported by an increase in new orders and an increase in the number of workers. Fulfilling new demands increases purchasing activity by manufacturing companies. It was also stated that the company was generally optimistic that output in the next 12 months would increase, amidst hopes of stronger market conditions and more stable prices.

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