Jakarta (ANTARA) - Deputy Minister of Industry, Faisol Riza, has said that strengthening the competitiveness of domestic industrial zones can directly accelerate economic growth to 8 percent, the target set by President Prabowo Subianto.

In a statement released by the ministry here on Thursday, he noted that the non-oil and gas processing (manufacturing) sector remains the backbone of Indonesia's economy.

In 2024, manufacturing accounted for the largest share of the national gross domestic product (GDP) contribution at 17.16 percent, with a growth of 4.75 percent, and the highest tax revenue of 25.84 percent.

Therefore, he said he believes that enhancing industrial zone competitiveness can increase the contribution of the domestic manufacturing sector to the GDP ratio, which can help lift Indonesia out of the middle-income trap.

"Currently, we have 168 operational industrial zones. We need to ensure that competitiveness and investment continue to increase to achieve the target of 8 percent economic growth by 2029," he added.

The ministry's director general of resilience, regional, and international industrial access, Tri Supondy, said that his side has prepared strategic policies to strengthen the competitiveness of industrial zones.

As stipulated in the National Medium-Term Development Plan (RPJMN) 2025–2029, this strategy aims to increase the value of the non-oil and gas processing industry's GDP to 8.59 percent by 2029.

"In the next five years, industrial zones will become new centers of growth, that are integrated with priority industries based on downstreaming and high technology," he informed.

Meanwhile, chairperson of the Industrial Zone Association (HKI), Sanny Iskandar, said that to accelerate the development of competitive industrial zones, a strong partnership between the government, manufacturers, and the financial sector is necessary.

He added that policies that support the development of skilled labor through vocational education and legal certainties are important for supporting industrial zones.

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Translator: Ahmad, Kenzu
Editor: Primayanti
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