The policy will affect performance of the manufacturing industry in the Republic of Indonesia, especially if it is followed by other provincesJakarta (ANTARA) - Industry Minister Agus Gumiwang opined that Governor Anies Baswedan's decision on total re-imposition of the large-scale social restrictions (PSBB) policy from Monday, September 14, would impact performance of the manufacturing industry.
"Jakarta will re-impose total large-scale social restrictions. The policy will affect performance of the manufacturing industry in the Republic of Indonesia, especially if it is followed by other provinces," he noted at the national coordination meeting of the Chamber of Commerce and Industry (Kadin) in Jakarta, Thursday.
Gumiwang pointed out that the manufacturing industry was currently again showing signs of growth, so implementation of total PSBB could potentially suppress this positive rate.
"We see that the industry is already growing. We are concerned that the industry will be under pressure. However, indeed, we convey to the government that public health is something that cannot be negotiated," he stated.
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Furthermore, Gumiwang believes that the total PSBB policy would hinder the import substitution process, although the government is targeting an import substitution program of 35 percent by 2022.
Moreover, Gumiwang expounded that import substitution can encourage the strengthening of foreign exchange and industrial structures, boost national productivity, and create a global value chain.
Import substitution can boost the trade balance and the utilization of processing production.
"If the PSBB is tightened in Jakarta and other regions, it will affect our import substitution program at the Ministry of Industry," he stated.
Gumiwang noted that the average utilization of national imported products reached 75 percent before the COVID-19 pandemic, but in April and May, it fell to the range of 30 percent to 35 percent due to PSBB.
"As of today, 53 percent to 54 percent. We will push it to 60 percent by 2020. In 2021, we will push it to 75 percent, and we will push it to 85 percent in 2022," he explained.
DKI Jakarta Governor Anies Baswedan has officially slammed the brakes on relaxations been applied to PSBB and announced their complete re-imposition to contain the spread of COVID-19.
The restrictions were relaxed as part of the shift towards transitional PSBB.
"Considering the emergency situation in Jakarta, there are no other choices left but to apply the emergency brakes. This means we have to implement PSBB, as it was at the onset of the pandemic. This is the emergency brake that we have to pull," he noted at a press statement at the Jakarta City Hall on Wednesday evening.
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Translator: Azis Kurmala
Editor: Sri Haryati
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