Minister upbeat about Indonesia emerging as ASEAN manufacturing hub

[Nike]

Minister upbeat about Indonesia emerging as ASEAN manufacturing hub
26 minutes ago

Jakarta (ANTARA) - Industry Minister Airlangga Hartarto is optimistic of Indonesia evolving into a manufacturing hub of the ASEAN.

"Indonesia continues to remain the main investment destination and also a production base for global producers to cater to the demands of domestic and export markets," Hartarto noted in a statement received in Jakarta on Wednesday.

Furthermore, several industrial sectors have an industrial structure in place, from upstream to downstream. For instance, the automotive industry, textiles and clothing, food and beverages, as well as basic metals and chemicals.

"In the near future, several automotive principals will join and make Indonesia an automotive manufacturing hub in the Asian region," the minister stated.

The potential of Indonesia's automotive industry is quite high, with vehicular production reaching 1.34 million units, worth US$13.76 billion in 2018. Presently, four main automotive firms have made Indonesia's manufacturing sector part of the global supply chain.

"Hence, the government has made consistent efforts to create a conducive investment climate and to simplify the licensing process and offer an incentive for the industry," Hartarto remarked.

Hartarto highlighted the need to boost investment to drive production in the manufacturing sector.

"We should boost production to encourage exports to traditional and potential markets," he stated.

In the first quarter of 2019, the manufacturing industry contributed 22.7 percent of the total investment value of Rp195.1 trillion, coming from foreign and domestic investments.

To boost investment in the industrial sector, one of the government's efforts was targeted at offering fiscal incentive facilities in the form of a tax holiday.



Editor: Rahmad Nasution

COPYRIGHT © ANTARA 2019
https://m.antaranews.com/en/news/12...indonesia-emerging-as-asean-manufacturing-hub

 

[Viet]

“emerging”?
I thought Indonesia is manufacturing hub!
But good news: manufacturing sectors are now in panic, rushing to the next exit door because the US increases tariffs on China. I expect half will come to Vietnam, the rest will head to Indonesia, Bangladesh and other. Win win for all.

@UKBengali

 

[艹艹艹]

But good news: manufacturing sectors are now in panic, rushing to the next exit door because the US increases tariffs on China. I expect half will come to Vietnam, the rest will head to Indonesia, Bangladesh and other. Win win for all.

All over the world already knows, Vietnam will be the next superpower

 

[Nike]

“emerging”?
I thought Indonesia is manufacturing hub!
But good news: manufacturing sectors are now in panic, rushing to the next exit door because the US increases tariffs on China. I expect half will come to Vietnam, the rest will head to Indonesia, Bangladesh and other. Win win for all.

@UKBengali

Humbleness, we don't talk much but do a lot

 

[Viet]

All over the world already knows, Vietnam will be the next superpower

Nonsense we make shoes that is something you don’t want to make any longer.

Vietnam, Indonesia, Bangladesh make shoes, while you make ...eh...?

 

[艹艹艹]

Nonsense we make shoes that is something you don’t want to make any longer.

Vietnam, Indonesia, Bangladesh make shoes, while you make ...eh...?

All over the world already knows, Vietnam will be the next superpower
Congratulations Vietnam, you will soon overtake China

 

[Nike]

All over the world already knows, Vietnam will be the next superpower
Congratulations Vietnam, you will soon overtake China

They got aircraft carrier

 

[艹艹艹]

They got aircraft carrier

Thank you for your remind

 

[Nike]

Toyota manufacturing Indonesia

 

[NEKONEKO]

They got aircraft carrier

And destroyer

 

[lcloo]

ICBM and Hydrogen bomb too. Vietnam super power!!!

 

[Nike]

Indonesia’s Manufacturing Sector Has Biggest Contribution in ASEAN
Oleh: Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation ; Diposkan pada: 4 Jan 2018 ; 2818 ViewsKategori: News

Manufacturing industry

Indonesia’s non-gas and oil processing industry plays an important role in accelerating the country’s economic development as it brings positive domino effects, such as an increase in value added of domestic raw materials, job opportunities, and foreign exchange earnings from exports. In addition, domestic manufacturing sector also gives the biggest contribution to taxes and excises.

“A country can be considered a developed one if it has strong industries. For that reason, we stay focused on implementing consistent policies on downstream industries which will bring multiplier effects to the economy,” Minister of Industry Airlangga Hartarto said in a press statement in Jakarta on Thursday (4/1).

Based on United Nations Statistics Division data per 2016, Indonesia ranks fourth out of 15 countries in the world whose manufacturing industry contribute significantly to Gross Domestic Product (GDP). Indonesia contributes more than 22 percent and is ranked after South Korea (29 percent), China (27 percent), and Germany (23 percent).

The average contribution of the 15 countries is 17 percent. England which contributes 10 percent is placed below the average figure, while Japan and Mexico are placed below Indonesia with 19 percent contribution.

“Twenty-two percent is such big achievement, so Indonesia is included in the world elite,” the Minister said.

Meanwhile, based on the report from United Nations Industrial Development Organization (UNIDO), Indonesia ranks ninth in manufacturing value added or increases by one ranking from the previous year. Indonesia shares the same ranking with Brazil and England, and places higher than Russia, Australia, and other ASEAN countries.

According to Airlangga, the contribution of Indonesia’s manufacturing sector can reach 30 percent if it is calculated from pre-production, production, to post production process.

“The current paradigm of global manufacturing industry is based on the agreement at World Economic Forum which states that the production process is counted as an one. Therefore, we can no longer view production process from the factories alone,” the Minister firmly said.

Furthermore, manufacturing is considered as one of leading sectors in boosting the acceleration of development and equitable distribution of the national economy. Thus, it is really important to conduct economic transform that will shift consumption-based into manufacturing-based economy.

“Besides, the President has instructed that Indonesia’s economic policies must lead to a more inclusive and quality economic development,” Airlangga said.

The Minister added that the objectives of the policies are to alleviate poverty and address social gap, as well as to increase employment as much as possible.

In an effort to promote equitable distribution of industry and manifest ‘Indonesia-centris’ condition, Ministry of Industry has also facilitated the development of industrial areas particularly outside Java Island, he added.

“New industrial areas are predicted to grow within the next two years, marking with the construction of eight new industrial areas outside Java Island that potentially absorbs 296.3 thousand workforces,” Airlangga stated.

Furthermore, the Minister regarded Indonesia in the view of its economic proportion to be categorized as an industrial country. “There are three keys to a successful industrialization, namely human resources, capital or investment, and technology,” he added.

Therefore, improving human resources competency through education and vocational training, the Minister added, is one of the Government’s priority programs after developing infrastructure.

“Preparation of skilled human resources is aimed at fostering and producing workforce that suits the needs of the industrial world. We have implemented vocational education so that the Vocational School has a model of ‘Link and Match’ with the industry,” the Minister concluded. (Humas Kemenperin/EN)(RAS/EP/YM/Naster)

https://setkab.go.id/en/indonesias-manufacturing-sector-has-biggest-contribution-in-asean/

 

[Kai Liu]

“emerging”?
I thought Indonesia is manufacturing hub!
But good news: manufacturing sectors are now in panic, rushing to the next exit door because the US increases tariffs on China. I expect half will come to Vietnam, the rest will head to Indonesia, Bangladesh and other. Win win for all.

@UKBengali

Even you bite 1%, your stomach burst to death.. Clown...

 

[Viet]

Even you bite 1%, your stomach burst to death.. Clown...

Laugh as you like. In 2018 VN fdi money inflow was close $36 billion. The first 4 months see a plus of 80 percent. I expect $70 billion fdi this year. If VN can accelerate infrastructure investment, we can absorb more Fdi. $100 billion if the trade war escalates. because VN infrastructure is still weak, labor force is running dry, I expect as said parts of money will head to Indonesia and Bangladesh.

 

[艹艹艹]

Laugh as you like. In 2018 VN fdi money inflow was close $36 billion. The first 5 months see a plus of 80 percent. I expect $70 billion fdi this year. If VN can accelerate infrastructure investment, we can absorb more Fdi.

Vietnam Braces for Hard Landing Amid World Trade Tensions
May 08, 2019
when the tide goes out, you will see who was swimming naked.
As an export-led economy based on factory products, Vietnam is extremely sensitive to the knock-on effects of foreign trade and consumption.