JAKARTA, Apr 24, 2019 - (ACN Newswire) - Indonesia's Ministry of Industry (Kemenperin) projects the manufacturing sector could reach 5.4% in 2019. Subsector projections include the food and beverage, machinery, textile and clothing, leather, leather products, footwear, metal product, computers and electronic equipment industries.
"Kemenperin in coordination with the other ministries and agencies is pushing these industries to contribute to economic growth, social stability, and dynamic development in the private sector," said Minister of Industry Airlangga in his statement on April 1.
Airlangga explained that the government is pushing development of the manufacturing industry in order to gain international competitiveness along with the roadmap of Making Indonesia 4.0.
"Besides that, optimizing productivity, especially in export oriented industry as well as to gain investment from import substitution industry. Right now, macro policy is kept on track as the government runs its economy package policy," said Airlangga.
To bolster the national manufacturing industry, the government also sealed Indonesia-Australia Comprehensive Economic Partnership Agreement (IA-CEPA). With the partnership agreement, Indonesian export to Australia will increase as Australia committed to eliminate its import tariff to 0%.
"We appreciate the comprehensive economic cooperation as it contributes toward momentum to push up mutual benefit of both countries," Airlangga added.
IA-CEPA is a new milestone in improving the Indonesia-Australia relationship. The comprehensive partnership not only includes agreement on goods and services trade and investment but also wider economic cooperation.
"The scope of comprehensive partnership will bring positive impact toward Indonesian and Australian long term economic cooperation," Airlangga said.
Airlangga added that investment in manufacturing industry could increase this year because the government had released the regulation related to the wider holiday tax through Minister of Finance Regulation (PMK) 150/2018 regarding the Granting of Corporate Income Tax Deduction.
Additionally, the implementation of online single submission (OSS) also makes the incentives more clear.
"It means, the investors no need to wait as Indonesia politic and economic condition is considered as steady. This is an opportunity for Indonesia to boost investments and exports while optimizing the Domestic Component Level (TKDN)," Airlangga added.
Manufacture players are also optimistic toward this year's economic growth from government supports to increase manufacturing industry. "We appreciate government efforts to boost the competitiveness national manufacturing, as well as efforts to push the national export product," said Chief of Finance PT Grand Kartech Tbk, Johanes Budi K.
Grand Kartech (IDX: KRAH) says that they are targeting the Australian market. With its ASME (America Society of Mechanical Engineers) and ISO international standard in engineering and manufacturing as well as its experience in serving the clients across the world, KRAH aims to demonstrate that local product can compete in the global market.
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