Indonesia expects COVID-19 vaccination to grow manufacturing industry 4 percent in 2021

Agus Gumiwang Kartasasmita, the Indonesian Minister of Industry. (The Indonesian Ministry of Industry)

Jakarta (Indonesia Window) – The Indonesian government expects that the mass vaccination program for COVID-19 throughout the country which started on Thursday (Jan. 14) would increase the manufacturing industry growth by 4 percent in 2021, and accelerate the national economic recovery.

“The initiation of vaccination can be a key driver of industrial recovery in Indonesia,” Industry Minister Agus Gumiwang Kartasasmita said in a written press statement here on Thursday (Jan. 14).


He stressed that the Ministry of Industry was committed to spurring back the competitiveness of the national industry through four moves.

First, maintaining industrial productivity during the pandemic through the policy of granting Operational Permits and Industrial Activity Mobility.

So far, 18,527 operational permits have been given to industrial companies to protect 5.16 million workers from losing their jobs.


Second, increasing the capacity of the domestic industry in supporting the handling of COVID-19, especially the pharmaceutical industries which supply medicines and medical devices.

Third, optimizing domestic products use program.

“The fourth is to continue the 35 percent import substitution program which is implemented simultaneously by increasing production, deepening industrial structures, and increasing investment,” Minister Agus said.


Through those programs and policies, he is optimistic that the manufacturing industry in the archipelagic country will grow positively, approaching 4 percent in 2021.

Earlier, in the second and third quarters of 2020, the growth of Indonesia’s manufacturing industry contracted, by 6.19 percent and 4.31 percent respectively.

“The manufacturing industry in 2021 is expected to return to a positive point. The entire manufacturing sub-sector will be vibrant again, assuming the pandemic can be controlled and economic activity will recover. We project that the growth of the national manufacturing industry in 2021 will grow by almost 4 percent,” Agus Gumiwang said.


Reporting by Indonesia Window

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