Wednesday, 22 May 2019 | 06:22 WIB

Indonesia’s Food and Beverage Industry Projected to Grow More Than Nine Percent

Indonesia Minister of Industry Airlangga Hartarto (setkab)

JAKARTA, NETRALNEWS.COM - The Indonesia Ministry of Industry projects the food and beverage industry to grow above nine percent in 2019 due to additional investments. This year, the food and beverage industry, textiles and textile products (TPT), as well as footwear industry, are ready to invest a total capital of IDR 79 trillion.

The food and beverage industry will conduct investments worth IDR.63 trillion, up 11 percent from 2018. The foootwear and TPT industries are preparing investments of IDR 2.8 trillion and IDR 14 trillion respectively, almost doubling from the previous year.

The government has made the labor-intensive sub-sector of industry a growth motor for manufacturing and a significant contributor to exports of non-oil and gas processing. "The government will continue to boost performance and attract investment in export-oriented industrial sectors and import substance," said Minister of Industry Airlangga Hartartoin Jakarta on Saturday (04/20/2019).

In 2018, non-oil and gas exports were recorded at US $ 130 billion, up by 3.98 percent compared to 2017. "In 2018, its contribution reached 72.25 percent. So far, industry has become the biggest contributor. Besides that, it means that the products of domestic manufacturing industries have talked a lot at the global level, "said Airlangga.

The Ministry of Industry also noted, investment in the manufacturing industry sector continued to grow significantly. In 2014, capital investment amounted to IDR 195.74 trillion, then rose to IDR 222.3 trillion in 2018. This increase in investment boosted employment up to 18.25 million workers in 2018, which contributed 14.72 percent to the total workforce national.

"From 2015 to 2018, there was an increase of 17.4 percent and this is expected to increase employment in 2019 along with the realization of investment," he added.

The Ministry of Industry targets, throughout 2019 the growth of the manufacturing industry can reach 5.4 percent. The sub-sectors that are expected to generate significant growth are the food and beverage industry, the machinery industry, the textile and apparel industry, the leather industry, leather goods, and footwear, as well as the metal, computer and electronic goods industries.