Director General of Chemical, Textile,and Multifarious Industries IKTA) Achmad Sigit Dwiwahjono said the Ministry will start reorganization on January 1, 2019 and IKTA Directorate General would be renamed Chemical,Pharmaceutical and Textile Industries (IKFT).
"Next year, investors would tend to be in wait-and- see position amid the political year. However, long term investors would continue. Medium term investors might wait," Sigit told Antara here on Friday.
He said investment in the chemical industry would likely be larger in the IKFT sector as it needs higher technology and large capital.
In addition, supplies of upstream chemicals are still dominated by imports that the Industry Ministry needs to attract more investment to the sector, he said.
"There is already investor interested in the upstream chemical industry from South Korea, but the interest is still in the phase of negotiation as we are weak in upstream chemical sector," he said.
In the pharmaceutical sector, Sigit expressed optimism that pharmaceutical industry would grow 7-10 percent in 2019 as the program of National Health Security (JKN) still is a magnet to attract more investment.
"The JKN program pushes up demand in the pharmaceutical industry that I am optimist this sector would continue to grow next year," Sigit said.
Investment in the pharmaceutical industry would be dominated 55 percent by foreign investors with local investors accounting for 45 percent, he said.
Sigit said, South Korean investors also are interested in textile industry , which is also a major industry in the country.
He said he hoped the target could be achieved next year that the IKFT could contribute significantly to the national industrial growth .
Reporting by Sella Panduarsa Gareta, Saragih
Editing by Otniel Tamindael