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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

KADIN INDONESIA

Indonesian Chamber of Commerce and Industry

Manufacturing Industry Needs Incentives and Pro-Business Policies

The Indonesian Chamber of Commerce and Industry (Kadin) encourages support and incentives from the government to boost the national manufacturing industry. This is needed after the decline in Indonesia's manufacturing Purchasing Manager Index (PMI) to 48.9 in August 2024, according to the S&P Global report, Monday (2/9/2024).

Domestically, the financing factor for export-oriented manufacturing industries by the government is still influenced by the high level of BI interest rates, causing credit to be expensive.

The challenge of Indonesia's labour productivity is not yet competitive when compared to other countries in Southeast Asia, and is still one of the obstacles that hold back the pace of the processing industry. Therefore, Kadin encourages government fiscal incentives to boost the national manufacturing industry.

Ease of doing business as well as supply chains and increased labour productivity are prerequisites to encourage the manufacturing industry to become a pillar of the national economy again.

The government is also expected to be able to maintain policy synergies between ministries and institutions to support the performance of the manufacturing industry. This is considered important so that the domestic manufacturing industry does not experience a decline.

The government is also expected to be able to maintain policy synergies between ministries and institutions to support the performance of the manufacturing industry. This is considered important so that the domestic manufacturing industry does not experience a decline.

The government is expected to maintain policy synergies between ministries/agencies to support the performance of the manufacturing industry and not issue policies that further weaken the industrial sector.

This situation does not only come from global conditions, but also from within the country. The complex supply chain situation also adds to the challenges for the manufacturing industry in the country. Therefore, the government must be careful and precise in issuing policies.

Industry players hope that the government will issue pro-industry policies, so that it can immediately return Indonesia's manufacturing PMI to an expansion position.

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KADIN INDONESIA

Indonesian Chamber of Commerce and Industry