Sunday, 21 July 2019 | 21:49 WIB

Manufacturing Industry Can Boost Economic Growth

Indonesia Minister of Industry Airlangga Hartarto (beringinnews)

JAKARTA, NETRALNEWS.COM - Indonesia Minister of Industry Airlangga Hartarto said the manufacturing industry was able to become a leverage for national economic growth. Therefore, the government will be more focused on spurring the performance of sectors that have the chain effect.

"President Joko Widodo stressed that in the future the government will further encourage increased investment in the industrial sector, especially export-oriented ones and become import substitutions, as well as focusing on developing the quality of human resources (HR), "the Minister of Industry said in Jakarta, Tuesday (05/28/2019).

Through the implementation of the Making Indonesia 4.0 road map, the government is seriously revitalizing the national manufacturing industry to be more globally competitive in the digital era. In the current era of industrial revolution 4.0, the use of digital technology is important to improve productivity and quality efficiently and produce product innovations that can meet both the domestic and export markets.

"Therefore, the government is determined to create a conducive investment climate and provide business licensing facilities and facilitate the provision of fiscal and non-fiscal incentives," said Airlangga. In addition, another important factor in encouraging industrialization activities is maintaining the supply of raw materials and the availability of energy at competitive prices.

Institute for Development of Economics and Finance (INDEF) researcher Izzudin Al Farras Adha said that the development of the manufacturing industry was the main effort needed by President Joko Widodo for his second period.

"The manufacturing industry as the sector that absorbs the largest labor force can encourage public consumption so that it can boost economic growth," he explained.

According to Izzudin, manufacturing industries, especially those that are Indonesia's comparative advantages, are expected to provide optimal added value for superior commodities so that they don't just export raw materials. This can also increase exports so as to reduce the trade balance and current account deficit in Indonesia.