Sunday, 3 January 2016

INVESTMENT IN THE MANUFACTURING SECTOR TARGETED AT 52.7%



The Coordinating Board of Investment (BKPM) set target for portion of the Manufacturing sector up to 52.7% or Rp.313.5 trillion of the entire investment realization of 2016 which was targeted at Rp.594.8 trillion, Head of BKPM Franky Sibarani stated that increase of portion of investment of the manufacturing sector was an effort to enhance transformation of Indonesia’s economy from consumer based to production based. This was press release of BKPM on Tuesday (18/8)

President Jokowi stated in his speech upon presenting financial report of 2016 which mentioned change in economic paradigm from consumptive to productive. Be enlarging the portion of investment realization in the manufacturing sector would help promote industrialization sector would help promote industrialization in the future.

Franky specified that growth of investment realization was expected to be from basic metal industry, metal goods, machineries and electronics, basic chemical industry; F&B industry; paper industry, goods and paper and printer; and other manufacturing industry. he was optimistic that target of investment growth of the manufacturing sector could be met considering attainment of Semester I/2015 where investment realization still grew 20,47%.

Amidst slow growing economy, investment realization of some industry in the manufacturing sector could grow high, such as metal industry, chemical industry, textile industry, and wood industry although some industry lines needed attention like food and footwear industry.

To realize the target, BKPM placed the industry sector high on priority list as investment beside infra-structure, agriculture, maritime, and tourism. Franky underscored he would coordinate with ministries and other institutions to promote pro-investment policies. He said that investors orientation labor intensive industry and export was in line with the Regional Minimum Wages Formula (UMR) which should be valid for at least 5 years, and trade collaboration with counterpart states to step up competitiveness in export. (SS) 

Business News - August 21, 2015

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