Jakarta: 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.
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"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. (Antara)