General Industry 2022 (ENG)
General Industry 2022 (ENG)
General Industry 2022 (ENG)
The Covid-19 pandemic has had a significant impact on efforts to achieve national priority targets by
continuing to build a manufacturing industry sector that is sovereign, independent, competitive, and
inclusive. Based on data from the Statistics Indonesia, the manufacturing industry sector
experienced a drastic decrease in 2020, reaching -2.52% or a decrease of -6.86 points when
compared to 2019. In line with the improving economy in Indonesia, the condition of the sector is
expected to gradually recover or grow around 3.58% in 2021 and is predicted to grow to 4.25% in
2022.
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Despite the turmoil and challenges caused by the pandemic, the manufacturing industry sector has
consistently played an important role as the main driver and support for the national economy. In
fact, the manufacturing industry sector is the main driving sector for Indonesia to get out of
recession.
The Ministry of Industry said that in 2022 the manufacturing industry sector began to bounce back.
This can be seen from a number of brilliant performances, including investment realization, export
achievements, tax contributions, contributions to GDP, and Purchasing Managers Index (PMI)
ratings.
Throughout 2021, investment in Indonesia's manufacturing industry reached IDR 325.4 trillion, an
increase of 19% from 2020, which amounted to IDR 272.9 trillion. This figure exceeds the investment
achievement target for the manufacturing industry, which has been projected by the Ministry of
recorded the largest investment portion of IDR 117.5 trillion or contributed 13% of the total
Most of the investment realization was spread across five regions: West Java at 15.1%, DKI Jakarta at
East Java
Other (29 Provinces) 9%
52%
Riau Banten
6% 6%
In order not to lose this good moment, there are several programs pushed by the Ministry of
Industry such as the 35% import substitution program in 2022, the program for Increasing the Use of
https://industri.kontan.co.id/)
In terms of the achievement of export value, the contribution of the manufacturing industry
continues to increase even amid the pandemic. The export value of the manufacturing industry in
January-November 2021 reached USD 160 billion or contributed 76.51% of total national exports.
When compared to the same period in 2020, the export performance of the manufacturing industry
increased by 35.36%. The export performance of the manufacturing sector at the same time
maintains the trade balance surplus that was printed since May 2020.
The activity of the manufacturing industry sector in the country was still quite stretched until the
end of 2021, in line with increasing production and demand for the export market. This is reflected
53.5 or still above the expansionary level (50), based on the results of the IHS Markit survey.
The Ministry of Industry explained that the achievements of the manufacturing industry sector in
terms of investment and exports accompanied its contribution to state revenues and to the
formation of national GDP which continued to increase. (Sources: The Ministry of Industry)
The Ministry of Finance (Kemenkeu) noted that the performance of tax revenues from the
manufacturing industry sector is still under pressure due to various incentives provided to the
sector.
Referring to the October 2021 edition of the Kita APBN report, the nominal GDP of the
manufacturing sector in 2021 is already higher when compared to 2019. With the tax incentives
given to the manufacturing sector in 2020 and 2021, the recovery of the manufacturing industry
For the manufacturing industry sector tax throughout 2021, on average, it contributed 29%, while
the industrial sector excise revenue contributed 95% of the total national excise revenue. (Source:
https://news.ddtc.co.id/)
According to the data from HIS Markit, the Purchasing Managers’ Index (PMI) of Indonesia’s
manufacturing sector in March 2022 has increased to 51.3 from 51.2 in March 2022. The increasing
value indicated that the manufacturing sector in Indonesia could expand its business.
Previously, according to the data published by Bank Indonesia the Prompt Manufacturing Index Bank
Indonesia (PMI-BI) in Q4/2021 has increased to 50.17% or an increase from 48.75% in Q3/2021. The
increasing value occurred in all components of PMI such as production volume, total order, and the
BI also projects that in Q1/2022 PMI will also increase and estimated around 53.83% or an increase
from Q4/2021’s realization. The increasing value will be supported by all components of PMI such as
production volume, total order, and the finished goods inventory. (Sources:
databoks.katadata.co.id)