Economic Recovery Policy Causes Non-Oil and Gas Processing Industry to Grow 3.67%


Throughout 2021, the non-oil and gas processing industry recorded a growth of 3.67%. This is an achievement compared to the achievement in 2020 which was only 2.52% due to the impact of the pandemic.

This growth is due to the strategic policies that have been issued by the government to boost productivity while creating a conducive business climate.

Minister of Industry Agus Gumiwang Kartasasmita explained, “The development journey of the manufacturing industry sector in 2021 is still marked by turmoil and challenges due to the Covid-19 pandemic. But Alhamdulillah, we were able to get through and can control it.”

Quoted from data from the Central Statistics Agency (BPS), several industries grew extraordinary double digits, including the transportation equipment industry which grew by 17.82%, followed by the basic metal industry (11.50%), and the machinery and equipment industry ( 11.43%). In addition, the chemical, pharmaceutical and traditional medicine industries continued their positive trend by growing 9.61%.

The Minister of Industry explained that the success in the growth of the industrial sector was the result of the Ministry of Industry’s hard work in proposing various physical and non-physical incentives. The distribution of these incentives is used to arouse the business enthusiasm of industry players amid a pandemic.

What’s more, the government is also simplifying regulations in all sectors. It aims to accelerate national economic growth.

Another Growing Industries

Agus added, “In line with efforts to accelerate national economic recovery, policies are needed to provide business certainty, legal certainty, and create a business climate that provides a sense of security and is conducive to conducting business activities, especially in the industrial sector,” Agus added.

Several activities that have been initiated by the Ministry of Industry are the issuance of Operational and Mobility Permits for Industrial Activities (IOMKI), a 35% import substitution policy until 2022, as well as optimizing the program for Increasing the Use of Domestic Products (P3DN).

Furthermore, the Ministry of Industry is also trying to guarantee the availability of industrial raw materials. This is very important in supporting the sustainability of the productivity of the industrial sector, especially during the pandemic.

This has been regulated in Government Regulation Number 28 of 2021 concerning the Implementation of the Industrial Sector which ensures that the industry can obtain raw materials through the commodity balance.

Based on data from BPS, the processing industry was the source of the highest growth for the economy last year. One of the main pillars was car production which grew by 62.56%, then motorcycle production grew by 34.41%, and cement production grew by 7.04%.

Another major contribution came from the manufacturing industry sector, which has consistently been the largest contributor compared to other sectors. The export value of the manufacturing industry in 2021 is USD 177.10 billion or contributes up to 76.49 percent of total national exports. This is of course very proud.

With the large contribution from the manufacturing sector, it has a good impact on labor absorption.

Regarding employment, Agus explained, “Along with the rise of the manufacturing industry sector from the impact of the pandemic, there will be an additional employment of 1.2 million people in 2021 so that the total number of workers in this sector will again increase to 18.64 million people. .”