From: Tempo InteractiveTEMPO Interactive, Jakarta:Industry Minister M.S. Hidayat predicted that exported manufactured products will amount to US$ 92.26 billion next year. This will be pushed by investments in the industry and related incentives. “This is expected to push industry’s growth,” he said yesterday.
The ministry recorded that from January to September this year, exported manufactured products were valued at US$ 68.8 billion. The export value represents 62.07 percent from the total national exports.
Next year, investment needs in manufacturing industry is predicted to amount to Rp124.6 trillion and will create 14.9 million new job opportunities, or an increase of 3.47 percent compared to this year. Minister Hidayat was also optimistic that the industry could grow by 5.2 to 6.1 percent next year along with the national economic growth.
He said that for next year the Ministry will focus on developing six priorities, which are labor-intensive industries, small and medium industries, capital product industries, natural resource-based industries, high growth industries and special priority industry.
Benny Wachjudi, Director General of Agro-Industry at the Industry Ministry felt that the fiscal incentive plan would push industry’s growth. The incentive will be a positive signal for investors even though it is still being discussed.
Gita Wirjawan, chairman of the Investment Coordinating Board was optimistic that the investment target from the ministry will be achieved. Meanwhile, Erwin Aksa, chairman of the Indonesia Young Entrepreneurs Association thought that the growth target of the manufacturing sector was realistic.
This year industry growth will almost reach 6 percent. The challenge for the government is to maintain a positive and competitive investment climate.
But so far there are still technical or non-technical obstacles for investment. The nontechnical obstacles are the complicated permit regulations, fiscal policy and import duties. The government has also been asked to push for more connectivity between regions by accelerating infrastructure and logistic construction.
Moreover, Erwin said that priorities from industry sector must be chosen so that sectors having multiplied added value can be accelerated.