Jakarta (ANTARA) - Minister of Industry Agus Gumiwang Kartasasmita is optimistic that the performance of the manufacturing industry will reach the target of 5.8 percent in 2024, amidst the challenge of global geoeconomic and geopolitical impacts.

The optimism was conveyed by the Minister following the role of the manufacturing industry as the backbone of national economic growth so far.

"Thank God, the manufacturing industry can be managed well so that growth continues to increase. This must become our collective focus and attention in the future," the Minister said in a statement received in Jakarta on Sunday.

The Minister stated that the important role of the national manufacturing industry is reflected in its contribution, which is classified as the largest to national GDP, with an achievement of 16.83 percent in the third quarter of 2023.

In the same period, manufacturing industry growth reached 5.02 percent, able to exceed national economic growth, which was at 4.94 percent.

"The manufacturing industry is also consistently the largest contributor to our export value. In the January-November period, exports of manufactured products still dominate, with a value of more than 171.23 billion US dollars," the Minister said.

Moreover, the safeguardglobal.com report states that Indonesia is in the top 10 contributors to world manufacturing products and is also the only ASEAN country on the list, he said.

Based on the publication, Indonesia contributes 1.4 percent to global manufacturing. The prestigious position is a significant increase because, four years ago, Indonesia was still in 16th place.

In line with hopes of improving global conditions and the national economy, the Minister is optimistic that the performance of the manufacturing industry will improve in the Year of the Wooden Dragon.

"We projected that the growth of the non-oil and gas processing industry in 2023 was 4.81 percent, and we have set a target for 2024 of 5.80 percent," he said.

In order to achieve the target, the Ministry of Industry is focused on implementing various priority programs in 2024.

For example, competency-based vocational education and training programs, machine and/or equipment restructuring programs for small and medium industries (IKM), as well as new entrepreneur-growing programs and IKM development programs for technology-based startups.

In addition, efforts to increase added value and industrial competitiveness are carried out through the Domestic Component Level (TKDN) certification program, continuing the downstreaming of natural resources in three sectors, that is agro-based industry, mining and mineral-based industry, and oil and gas and coal-based industry.

"We will also implement a government assistance program for the purchase of new two-wheeled KBLBB, the development of industrial areas, and the facilitation of green industry certification," he added.

Meanwhile, the budget ceiling posture of the Ministry of Industry in the 2024 National Budget (APBN) is Rp3.76 trillion.

The Minister emphasized that his party is determined to optimize budget absorption to implement various priority programs in efforts to develop national industry.

In 2023, the Ministry of Industry's budget reached Rp4.53 trillion, including the Additional Expenditure Budget (ABT) for electric motorbike subsidies of Rp1.4 trillion.

"Our budget absorption in 2023 is Rp3.16 trillion. However, without the ABT for electric motorbike subsidy, the realization would be 98.3 percent, or an increase compared to the realization in 2022 of 98.1 percent," he said.

Meanwhile, absorption from electric motorbike subsidy program in 2023 reached 11.532 units or Rp80.7 billion from the target set at 200 thousands units with a total budget of Rp1.4 trillion.

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Translator: Ade Irma Junida, Cindy Frishanti Octavia
Editor: Azis Kurmala
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