Industry Minister urges coordination for boosting manufacturing

Jakarta (ANTARA) - Industry Minister Agus Gumiwang Kartasasmita stated that Indonesia's manufacturing industry can expand by improving coordination with relevant stakeholders and issuing business-friendly regulations.

He noted that, in addition to the current unstable global economic conditions, domestic industries have been affected by regulations that do not favor industry players.

"Therefore, serious and well-targeted coordination is needed," he remarked in a statement issued on Monday.

On Monday, President Joko Widodo (Jokowi) expressed concern about the country's manufacturing Purchasing Managers Index (PMI), which recorded a contraction at 49.3 points in July. For the previous 34 consecutive months, the index had been maintained at an expansion level.

The president noted that the contraction should be monitored closely, as several other Asian countries are also experiencing it, with the output component seeing the most significant decline, according to Kartasasmita.

Jokowi also highlighted that the high cost of raw material imports due to rupiah fluctuations, as well as the influx of imported products, can affect the level of domestic demand.

"He emphasized the use of local raw materials and the protection of domestic industries. We must also identify non-traditional and potential new markets as export destinations for Indonesian products," Kartasasmita said.

He expressed confidence that the performance of the manufacturing industry can still recover if supported by pro-business policies, such as ensuring the availability of raw materials for production, promoting sustainability, expanding competitive industrial gas prices, and enforcing import substitution.

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"These policies can be effectively implemented if coordination is carried out in accordance with the rules," he said. "All parties must also be consistent and transparent to truly defend the domestic industry."