Indonesia remains the main focus of global investors who want to expand their business in the industrial sector. This increase in investment realization is also inseparable from the support of strategic policies that support business, including ease of granting permits and incentive facilities.
In the period 2014-2023, investment realized in the non-oil and gas processing industry sector showed fluctuations with an increasing trend. As mentioned by the Minister of Industry, Agus Gumiwang Kartasasmita, investors still see Indonesia as a very attractive and profitable location for their business.
When comparing conditions in 2014 with 2023, there is a significant jump in the investment value of the non-oil and gas processing industry sector. In 2014, it reached IDR 186.79 trillion, rising sharply to IDR 565.25 trillion in 2023. Cumulatively, investment in this sector for 10 years (2014-2023) reached IDR 3,031.85 trillion.
Still increasing despite the pandemic
Even in the midst of the Covid-19 pandemic, investors still maintain high confidence in responding to investment in Indonesia. This is proven by the significant increase in investment value in the manufacturing industrial sector from 2019 to 2023.
“Investment in the industrial sector in 2019 amounted to IDR 213.44 trillion, rose to IDR 259.28 trillion in 2020, rose again by IDR 307.58 trillion in 2022, and jumped to IDR 457.60 trillion in 2022,” said Agus in the statement.
In terms of growth, during the 2014-2023 period, there was a significant spike in growth in 2021-2023, reaching 48.77 percent. Followed by growth in 2015-2016 of 39.18 percent, and in 2014-2015 with growth of 24.22 percent.
Increasing investment realization in the industrial sector has a broad impact on the national economy, including increasing the number of workers. During the 2014-2023 period, there is a trend of increasing the number of workers in the non-oil and gas processing industry sector from year to year.
In 2014, the workforce in the manufacturing industry sector reached 15.62 million people, increasing to 19.29 million people in August 2023. There was a decline in 2020 due to the Covid-19 pandemic, which had an impact on the number of workers in this sector.
After the end of the pandemic, the industry managed to recover and continued to grow every year, which was also accompanied by an increase in the number of workforce absorption.
