Investment in processing industry estimated at Rp323 trillion in 2021

Jakarta (ANTARA) - The Industry Ministry has forecast investment in the processing industry to reach Rp323.56 trillion in 2021 based on the assumption that all sub-sectors have recorded positive growth.

According to Industry Minister Agus Gumiwang Kartasasmita, the projection was based on the hypothesis that the COVID-19 vaccination could help to bring the pandemic under control and to usher in recovery in economic activities.

The non-oil and gas processing industry is projected to record a 3.95-percent increase in 2021.

"After it recorded an increase of 37.1 percent as compared to the same period in 2019, investment in the processing industry in 2021 is projected to maintain its increasing trend and reach Rp323.56 trillion," the minister noted at the virtual year-end press conference here on Monday.

According to Kartasasmita, investment would become a driving factor for industrial sector growth in 2021. The law on job creation and the government's commitment to finalizing its derivative regulations have attracted investors.

Furthermore, the minister pointed out that investment contraction in Indonesia amid the pandemic was lower as compared to that in other ASEAN countries.

Some Chinese companies' plan to relocate their plants to Indonesia indicated that the country has emerged as an investment destination during the post-pandemic era.

As of September, investment growth in the processing industry had reached Rp265.28 trillion, up 37.1 percent, from the corresponding period in 2019.

Among the industry sub-sectors to have positive growth projection in 2020 are pharmaceutical, chemical and traditional medicine industry, chemical goods, basic metal, and food industry.

"We can see that food and beverage remained the favorite sector. Metal and automotive remain our power to encourage the development of battery-based and electricity-based vehicles," Kartasasmita affirmed.

Source: Antara News

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