Jakarta (Indonesia Window) – Indonesia’s foreign investment in the manufacturing sector reached 190.1 trillion rupiahs (some 13.5 billion U.S. dollars) in 2020, or grew 33 percent compared to that reached in 2019 worth 143.3 trillion rupiahs (some 10.2 billion U.S. dollars).

The realization of investment in the manufacturing industry contributed up to 46.1 percent of the total foreign investment value of 412.8 trillion rupiahs (some 29,4 billion U.S. dollars) in 2020.

The government is determined to continue to create a conducive investment climate in Indonesia through the implementation of various strategic policies, such as providing incentives and facilitating business permits for industry players, said Industry Minister Agus Gumiwang Kartasasmita, in a written statement here on Tuesday (Jan. 26).

Moreover, investment in the industrial sector has broad effects on the national economy as it boosts value added of domestic raw materials, increases the absorption of local labor, and rise foreign exchange from exports.

"We will all out so that the performance of the manufacturing industry sector can bounce back in the midst of the pandemic. The achievement of this investment figure makes us optimistic that 2021 will be a stepping year to accelerate national economic recovery," the minister said.

According to him, the Ministry of Industry is targeting the investment in the manufacturing sector in 2021 amounting to 323.56 trillion rupiahs (some 23.04 billion U.S. dollars). This optimism is supported by the implementation of the Job Creation Law and the improvement in the world economy after COVID-19 vaccination.

Agus said several preferred sectors to invest this year, including the food and beverage industry, basic metals, automotive, and electronics.

"We will also boost, among others, the development of investment in the pharmaceutical and medical device industries," he said.

Those sectors are priorities in the road map for Making Indonesia 4.0.

Reporting by Indonesia Window