The manufacturing industry sector recorded an investment of IDR 270.3 trillion in the first six months of 2023. This figure is the total of Domestic Investment (PMDN) and Foreign Investment (PMA). Based on data from the Ministry of Investment/Investment Coordinating Board, investment in the manufacturing industry sector accounted for 39.8% of the total investment realization in Indonesia for the January-June 2023 period which reached IDR 678.7 trillion. Overall, total investment in January-June 2023 increased by 16.1% (y-o-y) and reached 48.5% of the 2023 investment target which was set at IDR 1,400 trillion. Meanwhile, investment in the manufacturing industry sector increased by 17% year on year (YoY) in the January-June 2023 period.

"You can see that in the same period last year the figure reached IDR 230.8 trillion, while this year it reached IDR 270.3 trillion. This shows a quite significant increase," said the Minister of Industry (Menperin) Agus Gumiwang Kartasasmita in a press release on the Ministry of Industry's website, Saturday (22/7).

The Minister of Industry said, his party continues to make efforts so that the non-oil and gas industrial sector increases investment realization in Indonesia. The Ministry of Industry is always open to industry players who need support in order to expand their business in Indonesia.

The government continues to be proactive in attracting national and global investors by creating a conducive investment climate for business players. Investment opportunities continue to be pursued with priority for downstream-based industrialization to increase added value.

"We also encourage increased investment to provide benefits in accelerating the transformation of technology 4.0, improving the quality of Human Resources (HR), and developing a green industry," explained the Minister of Industry.

In the second quarter of 2023, the overall investment realization reached IDR 349.8 trillion, an increase of 15.7% YoY. The basic metal, metal goods, non-machinery and equipment industries are included in the top five sub-sectors with the highest realized investment, reaching IDR 42.4 trillion.

Other sub-sectors that also show high investment realization include the food industry, the chemical and pharmaceutical industries, the textile industry, and the rubber and plastic industries.

During that period, 464,289 workers were absorbed. Meanwhile, investment realization outside Java reached IDR 182 trillion, dominating the total investment by 52%.

According to Agus, the distribution of investment is getting more even with the growth of industrial areas throughout Indonesia. "We can see that investment realization in Central Sulawesi is in fourth place in the second quarter of 2023, amounting to IDR 26.6 trillion," said Agus.

The increase in investment realization until June 2023 is one indication that shows the growth of the Indonesian economy. The Minister of Industry assessed that this positive signal was in line with the positive numbers shown by other indicators.

This can be seen from the Industrial Confidence Index (IKI) for June 2023 at 53.93, as well as the Manufacturing Purchasing Manager's Index (PMI) which was recorded at 52.5, increased investment in the non-oil and gas processing industry also shows the optimism of industry players.

"Therefore, we are determined to maintain this trust by continuing to provide support to the industrial sector in Indonesia," added Agus.