Creating an industrial environment where the manufacturing sector can grow is not an easy task
Jakarta (ANTARA) - The government's efforts to develop the manufacturing sector are a manifestation of Indonesia's economic transformation push, according to Minister of Finance, Sri Mulyani Indrawati.

"Manufacturing is actually the transformation of the Indonesian economy,” she said at the launch of the World Bank’s Indonesia Economic Prospects report here on Thursday.

The development of the manufacturing industry is very essential because it will have a chain effect on Indonesia, such as the creation of formal jobs with a high-quality workforce and better salaries, she emphasized.

She said that so far, the Indonesian economy is still dominated by the informal sector, especially the trade sector, which makes it difficult to improve people's welfare.

"Not only adding value, but also being healthier and better, in this case for labor and also for capital," she added.

Among the government's efforts to develop and provide added value to the manufacturing industry are natural resources downstreaming and import substitutions, Indrawati pointed out.

Moreover, in the past 30 months, Indonesia’s trade balance recorded a surplus of up to US$44 billion, with trade dominated by exports of raw natural resource commodities due to soaring commodity prices at the global level.

"This trade surplus is being supported as some of the raw materials are now being processed and are creating a more sustainable and higher trade value,” the minister said.

While the downstream nickel commodity has contributed to a significant increase in the sale value, the government will still try to downstream other potential commodities.

"Creating an industrial environment where the manufacturing sector can grow is not an easy task," Minister Indrawati observed.

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Translator: Astrid Faidlatul Habibah, Katriana
Editor: Sri Haryati
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