The Ministry of Industry revealed that Indonesia is in the top 10 contributors to world manufacturing products. Indonesia is the only ASEAN country on the list issued by safeguardglobal.com. Based on this publication, Indonesia contributes 1.4% to global manufactured products. This achievement is a significant increase because four years ago Indonesia was still in 16th position.
“This is an increase in level because this year we are in the top 10 category. Indonesia is the largest manufacturing powerhouse in ASEAN,” said Minister of Industry Agus Gumiwang Kartasasmita in a written statement, Thursday (21/12/2023).
Agus explained that the increase in ranking indicated that the manufacturing sector had a multiplier effect on other sectors. As an illustration, with increasing industrial output, the transportation sector will also increase, as will the energy, agricultural, plantation and maritime sectors which are sources of raw materials and production input factors for the manufacturing sector.
Indonesia’s position in the ranks of world manufacturing is strengthened by the value of industrial output which continues to increase in the period 2020 to September 2023. In 2020 the value of industrial output was claimed to be recorded at US$ 210.4 billion, increasing to US$ 228.32 billion in 2021 and increasing again to US $ 241.87 billion in 2022. Until September 2023, the value of industrial output will reach around US $ 192.54 billion. The increasing competitiveness of the industrial sector in Indonesia is also supported by investment realization, both from Domestic Investment and Foreign Investment. Investment in the manufacturing industry sector is claimed to continue to show an increase from IDR 213.4 trillion in 2020, to IDR 307.6 trillion in 2021, then reaching IDR 457.6 trillion in 2022.
“In January to September 2023, investment in the manufacturing sector has been recorded at IDR 413 trillion,” explained Agus.
Manufacturing industrial products have been proven to penetrate the export market, as shown by the dominance of the manufacturing industrial sector in total Indonesian exports. Manufacturing industry exports, which in 2020 were recorded at US$ 131.09 billion, increased to US$ 177.2 billion in 2021. In 2022, the manufacturing industry export figure reached US$ 206.06 billion or an increase of 16.29% from the previous year’s achievement. . Meanwhile, in January-November 2023, the figure will reach US$ 171.23 billion.
The productivity of the manufacturing sector is also claimed to have succeeded in opening up more job opportunities. During the COVID-19 pandemic, the number of workers was 17.49 million, then gradually increased to 18.19 million in 2021 and 18.90 million in 2022. Most recently, data from Sakernas for August 2023 showed that the number of workers in the non-oil and gas processing industry sector was 19 .29 million workers.
Then the Indonesian Manufacturing Purchasing Manager’s Index, which for 27 consecutive months continues to be at the expansion level. This shows that the performance of the Indonesian manufacturing sector is stable, even though the global economy has not yet stabilized, it can maintain the perception of industry players regarding their business conditions.
“This shows the stable condition of Indonesia’s manufacturing sector. Until now there are only two countries in the world, namely India and Indonesia, which are in this position,” explained Agus.
December 21, 2023, detikFinance
(https://finance.detik.com/industri/d-7102602/top-ri-masuk-10-besar-penyumbang-produk-manufaktur-dunia)