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Photo: Doc. Ministry of Industry
The Minister Of Industry Is Confident That The IKM Sector Will Continue To Support The National Economy
Tuesday, 10 Dec 2024
Over the past four years, the government has actively promoted the National Movement for Proudly Made in Indonesia (Gernas BBI) to boost spending on domestic industrial products. The government continuously encourages the public to buy, use, consume, and promote local products, especially those made by small and medium enterprises (IKM), to help the industrial sector in Indonesia grow and develop.
Since 2023, the government has also aligned Gernas BBI with the National Movement for Proud Tourism in Indonesia (Gernas BBWI), as the local shopping initiative complements the promotion of tourism in Indonesia. This synergy opens up wider markets for MSME/IKM products while enhancing economic opportunities driven by the tourism sector.
"The Proudly Made in Indonesia movement is not just a slogan. It is a call to love, support, and take pride in our own creations," said Deputy Minister of Industry Faisol Riza during his speech at the Harvesting Event of the Proudly Made in Indonesia Ite Begawe Fest 2024 in Mataram on Sunday night (December 8).
The Deputy Minister emphasized that in the face of uncertain global economic conditions, it is essential to strengthen the foundation of the national economy by meeting the needs of the industrial sector in Indonesia, including the supply of raw materials. This is crucial for ensuring smooth productivity.
"One area of focus for the government is the IKM sector, which has proven to be a pillar and savior for the national economy amid the pressures of global economic uncertainty," he explained.
The Deputy Minister added that in response to the current global economic situation, the government aims to seize the opportunity to build the strength of domestic industries. The goals include achieving economic independence and increasing investment opportunities in the country.
Hilirisasi and industrialization are two inseparable aspects. With this strategy, we are confident that the national economy is ready to achieve the vision of Indonesia Gold by 2045, he added.
Moreover, the domestic non-oil and gas processing industry continues to perform well as a key driver of the national economy. This is evident from macroeconomic indicators, with the non-oil and gas processing sector growing by 4.84% in the third quarter of 2024, while the national economic growth rate stands at 4.95%. The contribution of the non-oil and gas processing industry to GDP in the third quarter of 2024 reached 17.18%, the highest among other economic sectors.
Additionally, the export value of the non-oil and gas processing industry reached USD 142.24 billion by September 2024, accounting for 73.76% of the total national exports, which amounted to USD 192.85 billion. Meanwhile, the cumulative investment in the non-oil and gas processing sector from January to September 2024 contributed Rp 515.7 trillion (40.9%). "Certainly, these positive achievements in the non-oil and gas processing sector will be a pillar in maintaining national economic stability and growth," said Faisol.
Aligned with the P3DN program
On another note, the government's commitment to increasing the use of domestic products is also reflected in the issuance of Presidential Instruction Number 2 of 2022. This mandates central and local governments, as well as state-owned and regional-owned enterprises, to plan, allocate, and realize at least 95% of the budget for goods/services to use Domestic Products (PDN), with 40% of that for products from Micro, Small, and Cooperative Enterprises.
"This opens up a wider market for IKM products, reaching not only the conventional market for the general public but also the government procurement market," said the Deputy Minister of Industry.
