The Jakarta Post
Industry Minister Airlangga Hartarto sees brighter investment prospects in the manufacturing industry following April 17’s general election as investors realize a number of prioritized projects.
“After the 2019 elections, many prioritized projects will be carried out, including those in the chemical industry and the finalization in electric cars,” said Airlangga in a statement on setkab.go.id on Saturday.
He said investment growth in the manufacturing industry, which was expected to boost economic growth, would also be triggered by the realization of several fiscal incentives offered by the government, including a tax allowance and tax holiday.
Airlangga said investors were confident in the Indonesian democratic system. “All industry sectors will run after the elections,” he said, adding that he was also confident that political and security conditions would improve.
“Even more, the government will introduce new policies to facilitate business players to start businesses in the country.”
Previously, after a limited Cabinet meeting chaired by President Joko “Jokowi” Widodo, the government announced that Saudi Arabia would soon invest US $6 billion in the petrochemical industry.
The plan was discussed during Jokowi’s recent visit to the country as Saudi Arabia reportedly expressed interest in making Indonesia a petrochemical hub in Southeast Asia. Jokowi had instructed several relevant ministers and officials in other institutions to facilitate the investment arrangement.
The Industry Ministry has encouraged growth in the petrochemical industry to help the development of the manufacturing sector from downstream and upstream businesses, Airlangga said.
“The petrochemical industry produces various raw materials for other manufacturing industries like packaging industry, textile, household equipment, automotive components and electrical products,” he added. (bbn)