Industry minister underscores drivers of industry performance in 2021

Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita highlighted the COVID-19 mass vaccination program and enactment of Law No. 11 of 2020 on job creation as the duo boosters for the national industry's performance in 2021.

The strategic moves are projected to expedite national economic recovery, Kartasasmita noted in a statement here on Thursday.

"The start of the vaccination program can become a booster for industrial recovery in the country," he remarked.

The ministry has committed to boosting the national industry's competitiveness through the application of four strategies.

The first strategy aims to maintain productivity during the pandemic through issuance of the industry operational and mobility license (IOMKI). As of now, the ministry has issued the license for 18,527 industries, with 5.16 million workers.

The second approach pertains to increasing the capability of the domestic industry to support the handling of the COVID-19 pandemic, especially the pharmaceutical industry that provides medicines and healthcare equipment.

The third strategy involves optimizing the domestic product usage (P3DN) program.

"The fourth strategy is to continue the 35-percent import substitution program simultaneously along with improving the production utility, industrial structure, and investment," the minister stated.

Kartasasmita is optimistic about Indonesia's manufacturing industry growing by four percent in 2021 after earlier recording a 6.19-percent contraction in the 2020 second quarter and 4.31-percent contraction in the third quarter of 2020.

"In 2021, the manufacturing industry is expected to return to clocking a positive growth. All sub-sectors in the manufacturing industry will recover on the assumption that the pandemic can be brought under control and economic activities can be revived. We projected the manufacturing industry in 2021 to grow by nearly four percent," he expounded.

This optimism is based on the improvement of Indonesia's Manufacturing Purchasing Manager Index (PMI) that indicated an expansion.

In December 2020, Indonesia’s Manufacturing PMI stood at 51.3 points, or up from the previous month’s figure of 50.5 points. The PMI index above 50 represents an expansion.

"In two consecutive months, Indonesia's manufacturing PMI figure denoted an expansion. Some determining factors include renewed confidence among industry operators over domestic consumption based on data in addition to the arrival of (the COVID-19) vaccine," he pointed out.

In terms of investment, Kartasasmita remarked that during the January-September period, the figure increased by 37 percent as compared to the corresponding period in 2019.

"Manufacturing product exports also increased significantly. This condition has renewed hopes for economic recovery in 2021," Kartasasmita affirmed.

Source: Antara News

Related posts