Indonesia is a country with a diverse economy, and one of the industries that has been growing consistently in recent years is the manufacturing sector. The manufacturing sector in Indonesia has been contributing significantly to the country’s GDP, and the government has been supporting this industry through various policies and incentives. One of the ways that the government has been supporting this industry is by promoting the export of industrial products. In this article, we will take a closer look at the data related to the export of industrial products from Indonesia.
Overview of Indonesia’s Industrial Sector
Before we dive into the data related to the export of industrial products, let’s take a brief look at the overall state of the industrial sector in Indonesia. The manufacturing sector in Indonesia is composed of various industries, including food and beverage, textiles, automotive, chemicals, and many more. According to data from the Central Statistics Agency (BPS), the manufacturing sector in Indonesia grew by 4.41% in 2020, despite the economic challenges posed by the COVID-19 pandemic.
The manufacturing sector’s contribution to the country’s GDP has been consistently increasing over the years, and in 2020, it accounted for 20.03% of Indonesia’s GDP. Furthermore, the government has set a target for the manufacturing sector to contribute 26% to the country’s GDP by 2025. This shows how important the manufacturing sector is for Indonesia’s economic growth, and why the government is keen on promoting the export of industrial products.
Data Ekspor Hasil Industri Indonesia
The export of industrial products is an integral part of Indonesia’s economy. According to data from BPS, the value of Indonesia’s non-oil and gas exports in 2020 was US$152.8 billion. Of this total, industrial products accounted for US$92.7 billion or 60.7%. This shows the significant contribution of industrial products to Indonesia’s export earnings.
The top five industrial products exported by Indonesia in 2020 were:
- Machinery and mechanical appliances, electrical equipment – US$26.5 billion
- Iron and steel – US$11.8 billion
- Plastics and articles thereof – US$5.7 billion
- Optical, photographic, cinematographic, measuring, checking, precision, medical or surgical instruments and apparatus; parts and accessories thereof – US$5.1 billion
- Organic chemicals – US$4.1 billion
These five products accounted for more than half of Indonesia’s industrial product exports in 2020. It is worth noting that the top 20 industrial products exported by Indonesia accounted for 87.1% of the country’s total industrial product exports. This shows how concentrated Indonesia’s industrial product exports are in a few key products.
When it comes to export destinations for Indonesia’s industrial products, the top five countries are:
- China – US$19.1 billion
- United States – US$11.3 billion
- Japan – US$8.2 billion
- Singapore – US$6.2 billion
- Malaysia – US$5.3 billion
These five countries accounted for 47.9% of Indonesia’s industrial product exports in 2020. China is by far the largest market for Indonesia’s industrial products, with more than double the export value of the second-largest market, the United States.
Government Support for Industrial Product Exports
The Indonesian government has been actively promoting the export of industrial products through various policies and incentives. One of the key policies is the Making Indonesia 4.0 roadmap, which aims to promote the development of Industry 4.0 in Indonesia’s manufacturing sector. Industry 4.0 refers to the use of advanced technologies such as artificial intelligence, big data, and the Internet of Things in manufacturing processes.
The government has also been providing incentives for companies that export industrial products. One of the incentives is the tax holiday program, which provides a tax exemption for new companies that invest in certain industries, including the manufacturing sector. The government has also established various free trade agreements with other countries, which provide favorable conditions for the export of industrial products.
Conclusion
The export of industrial products is an essential part of Indonesia’s economy, and the government has been actively promoting this sector through various policies and incentives. The data related to the export of industrial products from Indonesia shows that there are significant opportunities for companies in this sector to expand their business and reach new markets. With the government’s support, Indonesia’s manufacturing sector is poised for continued growth and success in the coming years.
