Indonesia has successfully risen two ranks to 12th place in the Top Manufacturing Countries by Value Added released by the World Bank. According to Minister of Industry Agus Gumiwang Kartasasmita, this shows that the domestic manufacturing sector is still growing positively.
“There is quite encouraging data released by the World Bank, namely that in 2023 Indonesia managed to enter the 12th position in the Top Manufacturing Countries by Value Added in the world, with a Manufacturing Value Added (MVA) value of US$ 255 billion,” he said in his statement written on Thursday (25/7/2024).
According to the Minister of Industry, Indonesia’s position is far superior to other ASEAN countries such as Thailand and Vietnam. The two countries’ MVA values are only half of Indonesia’s MVA value.
“At the global level, Thailand’s MVA is in 22nd position with a value of US$ 128 billion, while Vietnam is in 24th position with a value of US$ 102 billion,” he said.
Indonesia’s MVA value in 2023 increased by 36.4 percent (or US$ 68 billion) from 2022 which reached US$ 187 billion. “This raises Indonesia’s ranking from 14th in the world in 2022 to 12th in 2023,” he added.
The Minister of Industry stated that the manufacturing structure that has been owned in the country is much deeper and more evenly distributed so that it has greater added value than other competing countries in ASEAN or the world.
“To maintain or improve this achievement, there is only one key, namely the manufacturing industry must continuously strive to strengthen competitiveness,” he said.
The Minister of Industry added that based on the results of his working visit to attend the Hannover Messe 2024 event in Germany some time ago, the German Chancellor and the President of the European Union on that occasion conveyed the importance for a country to be able to create value (value creation).
“So, they both said that only countries that are able to create value will win in global manufacturing competition, including global economic competition. For that, we must quickly explore existing opportunities, one of which is by strengthening the role and exploring the potential for developing industrial services for the manufacturing sector in Indonesia,” he explained.
Based on Government Regulation (PP) Number 14 of 2015 concerning the National Industrial Development Master Plan (RIPIN) for 2015-2035, industrial services are one of the supporting sectors in building the national industry. So far, industrial services have played a strategic role as an enabler for industrial development effectively, efficiently, integrators, and comprehensively, and are able to support the activities of the processing industry sector and other sectors to contribute to the National GDP.
Economist from Brawijaya University Wildan Syafitri said that this achievement deserves to be appreciated because it is a positive achievement considering that in a crisis situation, Indonesia can actually increase the efficiency of the manufacturing industry. The latest data on the performance of the manufacturing industry sector also shows positive figures. The non-oil and gas processing industry sector in the first quarter of 2024 became the largest contributor to the national Gross Domestic Product (GDP), namely 17.47 percent with a growth of 4.64 percent and providing the largest tax revenue of up to 26%. On the export side, the value of shipments of non-oil and gas processing industry products in the first semester of 2024 reached 91.65 billion US dollars or equivalent to 73.27% of total national exports, with the absorption of 18.82 million workers. In addition, the realization of investment in the manufacturing industry sector in the same period reached 38.73%, with a value of IDR 155.5 trillion.
July 25, 2024, detikFinance
(https://finance.detik.com/industri/d-7456753/top-nilai-tambah-manufaktur-ri-kalahkan-thailand-dan-vietnam)