The Indonesian Chamber of Commerce and Industry (Kadin) is optimistic that the government can achieve its economic growth target amid global challenges. The business world hopes that the government can optimise strategic sectors. Especially the export-oriented manufacturing industry in order to provide added value to the national economy.

Vice Chairman of the Indonesian Chamber of Commerce and Industry (Kadin) Coordinator for Organization, Law and Communication,  Yukki Nugrahawan said that synergistic licensing regulations between the centre and regions are also important as part of the Government's efforts to increase investment.

As is known, Indonesia's manufacturing industry is dominated by domestic market-oriented subsectors. Only a handful are export-orientated.

This is inversely proportional to the manufacturing industries of ASEAN-5 countries, such as Malaysia, the Philippines, Thailand and Singapore, which are more export-oriented.

"This can encourage job creation and business expansion," said Yukki.

The manufacturing industry is expected to face challenging conditions until. The risk of inflation in business operating costs or capital expenditure due to the side effects of the weakening exchange rate is expected to remain high until the end of the year.

Meanwhile, other challenges come from the market. There is a potential decline in demand from both domestic and foreign sources. Another factor is the potential decline in people's purchasing power for the rest of the year.