The Development of Indonesia's Manufacturing Industry

Indonesia as one of the largest countries in the world turns out to have various important roles among countries in Southeast Asia. Among the most prominent roles is the development of the manufacturing industry.

On a national scale, this sector contributes in the form of an economic increase of 20,27% by shifting the role of Commodity-Based to Manufacture Based. As a result, in Southeast Asia, Indonesia became the largest manufacturing base.

Manufacturing Value Added (MVA) figures for this industry also occupy the top position among ASEAN countries by achieving a value of 4,5%. Globally, Indonesian manufacturing is ranked 9th out of all countries in the world.

Well, what is the development of the Indonesian manufacturing industry that is happening in the field today? The Ministry of Industry said that the manufacturing industry in Indonesia turned out to have the ability to be more productive and provide a broad chain effect.

In this way, Such as increasing the value of raw materials, increasing the number of workers, and increasing the country's foreign exchange by recording the largest taxes and customs will occur. This is also based on the ability of several sectors in this industry that have a percentage of performance above the Gross Domestic Product (GDP) nationally, including the metal industry of 9,94%, the textile and clothing industry with a figure of 7,53%, and industry transportation equipment at 6,33%.

It is not only that, the ability of the people's purchasing power to the various types of products offered is increasing from time to time so that the production process can continue to run and experience an increase in accordance with demand.

This situation is also supported by other ASEAN countries, such as Vietnam and Philippines. In this way, national economic growth can continue to be encouraged and increased competitiveness domestically, regionally, and also globally can continue to occur.

The development of the manufacturing industry in Indonesia is caused by the downstream method implemented by the government. This should also be supported by an increase in investment and export performance to maintain the value of the manufacturing industry.

Another factor affecting the growth of this industry is Indonesia's largest economic system in ASEAN because Indonesia's position is in the One Trillion Dollar Club group. The challenges faced are the need for support from various parties to work together including the government, employers, and the general public.

These are some of the things related to the development of Indonesia's manufacturing industry today. One particular location for industrial estates with a variety of the best world-class manufacturing companies that play an important role in Indonesia is Karawang New Industry City (KNIC).

KNIC itself is located in West Java by carrying out a concept as a world-class integrated industrial city so that the presence of world-class infrastructure is clearly visible in this place. It does not only aim to support the performance of a manufacturing company, but KNIC is also present to support the acceleration of regional economic growth and present a Multiplier Effect that is useful for socio-economic development in Karawang and other regions in the West Java region.


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