Deputy Industry Minister Reveals Causes of Low Industrial Utilisation
The Ministry of Industry has acknowledged that the national manufacturing utilisation rate continues to face significant challenges. The situation is influenced by global economic pressures and unresolved energy supply issues.
Deputy Industry Minister Faisol Riza stated that the government is continuously seeking solutions to increase industrial production capacity without burdening business operators. According to him, the problem stems not only from the demand side but also from production cost factors.
"Regarding the 61.8% utilisation rate, there are certainly many things that the leadership and members of Commission VII understand well about the global situation, which greatly affects almost all countries, including industrial nations," Faisol said during a working meeting with Commission VII of the House of Representatives on Tuesday.
The government is striving to maintain industrial growth through various means. A number of new investments are also being encouraged to strengthen national industrial capacity in the coming years. However, this process is considered to require time.
"That is why today almost all industrial countries are competing to accelerate industrialisation in their respective nations. Our utilisation rate is somewhat similar to several other industrial countries, such as India, but we are trying to continue maintaining industrial performance so it keeps growing well through various collaborations across ministries and agencies, especially the industrial initiatives developed by the President through BPI Danantara, as well as new investments," he said.
One of the main challenges currently facing the industry is energy availability, particularly gas. The government is continuously working to secure supply through various schemes to keep prices competitive for industry players.
"In addition, there are internal obstacles for which we have also requested support from various institutions, for example, support regarding energy sufficiency in the gas sector, where we know the government, amidst the existing global situation and the rise in global gas prices, continues to strive to provide for industrial needs," he said.
Resolving these issues requires comprehensive coordination from the upstream to downstream sectors so that the industry remains able to compete amidst global pressures.
"Nevertheless, we know that it is not easy to solve everything because the upstream and downstream sectors must be well coordinated," Faisol said.