"We actively encouraged the inflow of investment in the industrial sector. The construction of (new) plants has surely had a multiplier effect on the national economy, including increasing the added value of domestic raw materials, creating more jobs, and raising foreign exchange earnings," Industry Minister Airlangga Hartarto noted in a written statement released on Tuesday.
The amount of realized domestic and foreign investment in the industrial sector in the first semester of 2018 stood at Rp46.2 trillion and Rp75.8 trillion (US$5.6 billion) respectively, he remarked.
The food industry was the biggest contributor to the realization of domestic investment in the manufacturing sector, with Rp21.9 trillion, or 47.50 percent; followed by the chemical and pharmaceutical industry, with Rp6.4 trillion, or 14.04 percent; and metal, machine, and electronic industry, with Rp5.8 trillion, or 12.70 percent.
Meanwhile, the metal, machine, and electronic industry dominated the realization of foreign investment in the manufacturing sector, with $2.2 billion, or 39.69 percent; followed by the chemical and pharmaceutical industry, with $1.1 billion, or 18.84 percent; and food industry, with $586 million, or 10.41 percent.
The minister remarked that the injection of funds from investors served as a driving force for the national economy. Moreover, industry is the main engine of the nation`s economic growth.
"We believe investment will be able to strengthen the country`s industrial structure and produce goods as substitutes for imported raw materials," he stated.
Hence, the government is determined to create a conducive business climate to spur investment both in new and expansion projects, he noted.
"The government has issued several policies to ease the inflow of foreign and domestic investment," he pointed out.
The strategic steps include offering investors to make optimum use of fiscal facilities, including tax holiday, tax allowance, and duty-free facility to import capital goods and raw materials.
Reporting by Sella Panduarsa Gareta
Editing by Suharto
Reporter: Antara
Editor: Andi Abdussalam
Copyright © ANTARA 2018
