Friday, 19 July 2019 | 05:35 WIB

2018, Investment in Manufacturing Sector Expected to Reach IDR352 Tln

Industry Minister Airlangga Hartarto.

JAKARTA, NNC - Minister of Industry Airlangga Hartarto said investment in the industry as a whole for the manufacturing sector is expected to reach IDR352 trillion in 2018.

From this investment target, it is expected to create employment, increase added value, and foreign exchange proceeds from exports.

"Therefore, the industry becomes the main support of the target of economic growth," said Airlangga.

Airlangga explained most of the investment targets in 2018 are predicted to be withdrawn from 13 industrial areas that continue to be developed. The value is estimated at IDR250.7 trillion.

"The government has provided ease of investment 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 in an official statement on Friday (1/12/2018).

Furthermore, he said, the Ministry of Industry and related stakeholders continue to synergize to improve the competitiveness and attractiveness of investment in the industrial sector, among others through the creation of favorable business climate and legal certainty, the use of the latest technology to encourage quality improvement, efficiency and productivity, the provision of facilities in the form of fiscal incentives.

This is supported by the availability of raw materials, competitive energy prices, competent human resources (HR), as well as ease of market access and financing.

"Consumption growth also needs to be maintained and again improved so that demand for industrial products is increasing," he added.

The rise in new investment commitment is based on Presidential Regulation No. 91 of 2017 on Regulation on Accelerated Enforcement of Business. In addition, this is also thanks to the collaboration of two Task Forces, the Task Force for Economic Policy Package (PKE) and the Task Force for Acceleration of Business Implementation (PPB).

In order for the implementation of investment and ease of doing business in Indonesia to be realized effectively, the two task forces transform the entire investment and business process in Indonesia into online and integrated one.