Govt Targets Processing Industry Growth of 5.6% in 2022

September 01, 2021

JAKARTA – The government is targeting an economic growth rate of 5 to 5.5% by 2022. In order to reach this, it must be able to improve consumption, investment and the number of exports and imports.

 

"Basically, this level of growth can only be reached when public consumption rates return to around 5.3%, and government consumption rates reach 2.8% to 4.5%," explained the Coordinating Economic Minister Airlangga Hartarto during the 2022 State Budget press conference on Monday (8/16).

 

Minister Airlangga added that the targeted growth rate can also be achieved by improving investment levels to around 5.6% to 7%, while export levels must reach around 5.8% to 7.3%.

 

The processing industry plays a key role in Indonesia's economic growth, due to its contribution to the gross domestic product (GDP) reaching 20%. This year, the processing industry managed to grow by 5.6%.

 

"The processing industry directly affects our trade. That is why we are hoping it can grow to around 4.9% to 5.5%," he said.

 

Meanwhile, the industry managed to record an export rate of US$13.56 billion in July 2021, which was a 3.63% decrease from the previous month. This was due to the effects of the government's multi-tiered public activity restrictions (PPKM) slowing down production that contributed to the loss of exports.

 

However, when observing the industry's performance between January and July 2021, we can see that the industrial sector has improved its export levels. During this time, the processing industry's export levels rose by 31.36%, raking in US$94.62 billion, year-on-year.

 

This is helped also by the manufacturing industry's performance, which contributed 78.47% to the total national export levels between January and July 2021 reaching US$120.57 billion; higher than the levels it recorded in the same period in 2019.


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