A number of investors from the manufacturing industry sector are still confident to realize their investments in Indonesia, despite the pressure from the Covid-19 pandemic. This investment will strengthen the manufacturing structure in the country so that it can increase competitiveness.
Minister of Industry Agus Gumiwang Kartasasmita said that along with the government's various efforts in creating a conducive business climate, Indonesia is still the main destination country for global scale investors.
"The issuance of Law Number 11 of 2020 concerning Job Creation can provide positive sentiment to investors to continue pouring their funds in Indonesia. This is because there are various conveniences obtained by industry players. Moreover, there is also the government's determination to accelerate the handling and control the Covid-19 pandemic," he explained.
Referring to data from the Ministry of Investment/BKPM, in January-June 2021, the realization of investment in the industrial sector was Rp. 167.1 trillion, up 29% compared to the same period in 2020 of Rp. 129.6 trillion. In the first semester of this year, the industrial sector contributed up to 37.7% of the total national investment value which reached Rp442.8 trillion.
The two prima donna industrial sectors that became the biggest contributors, namely the basic metal industry, metal goods, non-machinery and equipment which invested Rp 57.6 trillion or contributed 13%. Next is investment from the food industry of IDR 36.6 trillion (8.3%).
Meanwhile, during these six months, the value of domestic investment (PMDN) from the industrial sector reached Rp. 46.3 trillion or contributed 21.6% of the total PMDN which reached Rp. 214.3 trillion. Meanwhile, the value of foreign investment (PMA) from the industrial sector reached Rp. 120.8 trillion or contributed 52.9% of the total FDI which reached Rp. 228.5 trillion.
The contribution of the domestic investment value of the industrial sector came from investment in the food industry of Rp. 14.7 trillion, which included 2,644 projects, then the chemical and pharmaceutical industry of Rp. 8.4 trillion (1,074 projects), the basic metal industry, metal goods, not machinery and equipment of Rp. 6, 8 trillion (643 projects), the paper and printing industry Rp 5.4 trillion (615 projects), and the non-metallic mineral industry Rp 4.7 trillion (435 projects).
Furthermore, the investment in the rubber and plastic industry is Rp. 3.2 trillion (765 projects), the textile industry is Rp. 1.1 trillion (614 projects), the motor vehicle industry and other means of transportation are Rp. 678 billion (270 projects), the wood industry is Rp. 404 billion (516 projects). leather goods and footwear industry Rp143 billion (101 projects), machinery, electronics, medical instruments, electrical equipment, precision, optical and watch industries Rp130 billion (471 projects), and other industries Rp546 billion (804 projects).
The contribution of FDI value in the industrial sector came mainly from investment in the base metal, metal goods, non-machinery and equipment industry of US$ 3.4 billion (550 projects), the food industry of US$ 1.5 billion (1,216 projects), the motor vehicle and equipment industry. other transportation US$ 961.2 million (624 projects), chemical and pharmaceutical industry US$ 818.2 million (779 projects), as well as machinery, electronics, medical instruments, electrical equipment, precision, optical, and watch industries US$ 371, 4 million (677 projects).
Next, investment in the paper and printing industry is US$ 246.8 million (239 projects), non-metallic mineral industry US$ 220.2 million (161 projects), leather goods and footwear industry US$ 187.5 million (200 projects ), textile industry US$ 163.1 million (560 projects), rubber and plastic industry US$ 158.7 million (527 projects), wood industry US$ 28.2 million (231 projects), and other industries US$ 141 million (520 projects).