|Wednesday, 24 April 2019, 17:00 HKT/SGT|
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 industries as well as to gain investment from import substitution industries. 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 that partnership agreement, Indonesian exports to Australia will increase as Australia committed to reducing its import tariff to 0%.
"We appreciate the comprehensive economic cooperation as it contributes towards momentum to raise the mutual benefit of both countries," Airlangga added.
IA-CEPA is a new milestone in improving Indonesia-Australia relations. The comprehensive partnership not only includes agreements on goods and services trade and investment but also wider economic cooperation. "The scope of the comprehensive partnership will positively impact 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, investors no longer need to wait as Indonesia's political 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)," said Airlangga.
Manufacturing industry players are also optimistic over this year's economic growth and government support of the manufacturing industry. "We appreciate government efforts to boost the competitiveness of national manufacturing, as well as efforts to push the national export product," said PT Grand Kartech Tbk Chief of Finance Johanes Budi K.
PT Grand Kartech (IDX: KRAH) says that it is 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 international clients, KRAH aims to demonstrate that local product can compete in the global market.
+62 812 32885533
Email: [email protected]
Topic: Press release summary
Sectors: Daily Finance, Daily News
From the Asia Corporate News Network
Copyright © 2021 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.