Investment in the manufacturing sector increased to Rp230.8 trillion (US$15.4 billion) in the first half of 2022 from Rp167.1 trillion (US$11.2 billion) in the corresponding period of 2021, Industry Minister Agus Gumiwang Kartasasmita has informed.

The figure accounted for 39.5 percent of the total investment value, which was recorded at Rp584.6 trillion (US$39 billion) in the first half of 2022.

"The manufacturing industry sector has an investment value of Rp167.1 trillion in the first semester of 2021 (which increased) to Rp230.8 trillion in the first half of 2022, or a double-digit increase of 38 percent,"

So far, increased investment in the industrial sector has always had a profound impact on the national economy, he said. In addition to increasing foreign exchange and employment, it also improves the manufacturing structure so that Indonesian industries can become more competitive.

"Indonesia is still an investment destination because it is supported by a large market potential and pro-business government policies for business players, including efforts to accelerate national economic recovery due to the impact of the COVID-19 pandemic," the minister elaborated.

Meanwhile, foreign investment in the industrial sector reached Rp165.6 trillion (US$11 billion), accounting for 53.4 percent or the largest chunk of the total FDI (foreign direct investment) of Rp310.4 trillion (US$20.7 billion).

“Investors are currently targeting more productive sectors, such as the manufacturing industry, compared to other sectors. Therefore, in addition to encouraging the capital-intensive industrial sector for technology transfer, we are also encouraging the labor-intensive industrial sector in a bid to increase job vacancies in the country," Kartasasmita informed.

In addition, efforts are needed to make Indonesia a country with eco-friendly industries because nowadays, the global community is tending to choose products from industries that use new and renewable energy.

Source: antaranews.co