In line with efforts to accelerate national economic recovery, policies are needed to provide business certainty, legal certainty, and to create a business climate that provides a sense of security and conducive situation, especially in the industriaJakarta (ANTARA) - The non-oil and gas processing industry recorded a growth of 3.67 percent in 2021 after reporting a contraction of 2.52 percent in 2020 due to the COVID-19 pandemic, the Industry Minister has informed.
The recovery in the manufacturing sector was the result of various strategic policies implemented by the government to boost productivity and create a conducive business climate, Minister Agus Gumiwang Kartasasmita said in a statement issued here on Monday.
"The development journey of the manufacturing industry sector in 2021 was still marked by turmoil and challenges due to the COVID-19 pandemic. However, thanks to God, we were able to get through and control it," he remarked.
Based on data from the Central Statistics Agency (BPS), several industries clocked double-digit growth, including the transportation equipment industry, which grew by 17.82 percent, followed by the basic metal industry (11.50 percent) and the machinery and equipment industry (11.43 percent), he noted.
In addition, the chemical, pharmaceutical, and traditional medicine industries continued their positive trend by growing 9.61 percent, he added.
The growth of the industrial sector in 2021 was the result of the Ministry of Industry's efforts and the implementation of various fiscal and non-fiscal incentives for industrial players amid the pandemic, he emphasized.
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In addition, the simplification of regulations in all sectors continued to be encouraged to accelerate national economic growth, he said.
"In line with efforts to accelerate national economic recovery, policies are needed to provide business certainty, legal certainty, and to create a business climate that provides a sense of security and conducive situation, especially in the industrial sector," the minister remarked.
The strategic policies initiated by the Ministry of Industry during the pandemic included issuing operational and mobility permits for industrial activities (IOMKI), a 35-percent import substitution policy until 2022, as well as optimization of the program to increase the use of domestic products (P3DN), he informed.
"In the automotive sector, the incentive program, namely no luxury tax (PPnBM) on the purchase of new cars, has also proven to be able to support growth and increase vehicle production," Kartasasmita said.
In addition, the ministry focused on the development of small and medium industries (IKM) and the implementation of industrial downstreaming because of their broad impact on the economy, he added.
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Furthermore, the ministry also sought to guarantee the availability of industrial raw materials, he said. This was very important for supporting the sustainability of the productivity of the industrial sector, especially during the pandemic, he added.
The government also issued Government Regulation Number 28 of 2021 concerning the Implementation of the Industrial Sector to ensure industry players could obtain raw materials through the commodity balance.
"The strategy of fulfilling raw materials for industry must also be a concern during the current surge in COVID-19 cases, so that the industry continues to produce to meet export and domestic demand," Kartasasmita said.
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According to a BPS report, the manufacturing industry remained the highest source of growth for the economy last year, he noted.
One of the main pillars was car production, which grew 62.56 percent, then motorcycle production (up 34.41 percent) and cement production (up 7.04 percent), he added.
The minister said that the manufacturing industry sector has remained the backbone of the national economy. This has been reflected in its role as the largest contributor to the national gross domestic product (GDP), he added.
"We really appreciate the manufacturing industry players who are consistently the biggest contributors among other economic sectors," the minister said.
In the fourth quarter of 2021, the contribution of the industrial sector to the national GDP reached 18.80 percent, up 4.92 percent year on year, he added.
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Translator: Sella P, Azis Kurmala
Editor: Fardah Assegaf
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