Manufacturing sector investment surpasses Rp365T

Container loading
Container loading and unloading activities at Tanjung Priok. (IO/Muhammad Hidayat)

Jakarta, IO – Amid weakened global growth prospect, Indonesia is still an attractive investment destination for national and global manufacturing industry players. This is reflected in the realization of manufacturing sector investment which reached Rp365.2 trillion between January-September 2022.

“This is 54 percent higher compared to the same period last year, which recorded Rp236.8 trillion. The confidence of investors in this sector must be maintained through various strategic policy supports,” said Industry Minister Agus Gumiwang Kartasasmita in an official statement on Wednesday (26/10).

According to data from the Investment Ministry/Investment Coordinating Board (BKPM), in the period of January-September 2022, the manufacturing sector contributed 40.9 percent to total investment of Rp892.4 trillion. Cumulatively, investment grew 35.3 percent yoy, and over the past nine months it has managed to reach 74.4 percent of the Rp1,200 trillion target for 2022.

Meanwhile, domestic investment (PMDN) in the manufacturing sector topped Rp104.9 trillion. The sub-sector with the largest contribution is the food industry (Rp38 trillion), 9.2 percent of total PMDN realization of Rp413.1 trillion, while foreign direct investment (PMA) touched Rp260.3 trillion from the basic metal industry, metal goods, non-machinery and equipment which hit US$8.5 billion, accounting for 25.3 percent of total PMA realization of Rp479.3 trillion.

Read: 27 countries apply for IMF financial assistance, is Indonesia one of them?

“In the midst of the current global situation beset by food and energy shortage and financial turmoil, all countries are competing for investment because it can increase added value, create jobs and brings in much-needed foreign exchange,” said Agus. (rr)