"Currently, the Industry Ministry is trying to map solutions to secure the industrial sector from the impact of the ongoing conflict,"
Jakarta (ANTARA) - The Industry Ministry has prepared incentives for the import of industrial raw materials from the Middle East to secure the industrial sector amid the turbulent global geopolitical situation.

Industry Minister Agus Gumiwang Kartasasmita stated here on Thursday that the incentives are mainly for upstream chemical product industries. These industries mostly import naphtha and other chemical raw materials from the Middle East.

He assessed that the three impacts of the current global geopolitical situation are the rise in energy prices, the increase in logistics costs, and the strengthening of the US dollar exchange rate.

"Currently, the Industry Ministry is trying to map solutions to secure the industrial sector from the impact of the ongoing conflict," he stated.

Kartasasmita underscored the need for relaxation of raw material imports, while other countries are also competing to find alternative suppliers to meet the needs of their raw materials.

In addition to the incentives, the government is accelerating its efforts to deepen, strengthen, and disseminate industrial structures.

It also seeks to bolster the import substitution program that needs to be supported by the Domestic Component Level (TKDN) in order to anticipate excess trade diversion from other countries to Indonesia.

The minister believes that now is the right time for the industrial sector to get certainty on the natural gas price for specific industries (HGBT) policy.

He assessed that the increasing energy prices could decline the productivity and competitiveness of industrial sub-sectors. Hence, the HGBT policy is necessary to increase production competitiveness.

Furthermore, his side urged to increase the use of local currency for bilateral transactions carried out by business actors in Indonesia and partner countries to reduce dependence on foreign currencies.

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Translator: Ahmad F, Kenzu
Editor: Arie Novarina
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