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The Minister Of Industry And The Minister Of National Development Planning Have Agreed To Make Manufacturing The Leading Sector For Economic Development

Minister of Industry Agus Gumiwang Kartasasmita met with Minister of National Development Planning/Head of Bappenas Prof. Rachmat Pambudy on Friday (November 1). The meeting took place at the Bappenas office, where both ministers discussed the direction of industrialization policies in the National Long-Term Development Plan (RPJPN) 2025-2045 and the draft of the National Medium-Term Development Plan (RPJMN) 2025-2029.

"As stated by the Minister of National Development Planning, to achieve economic development targets, the manufacturing industry must be the leading sector. We agree that achieving these targets requires the right policies and strategies," said the Minister of Industry.

During the 90-minute meeting, the Minister of Industry presented three key points to the Minister of National Development Planning. First, he discussed the draft government regulation on natural gas for domestic needs. Agus explained that this draft was approved in a limited meeting by President Joko Widodo in July. The regulation will not only cover gas needs for manufacturing but also for energy and electricity.

Additionally, this regulation could be a game changer for industrial areas, as it would allow for gas imports to meet the needs of the manufacturing and energy sectors. "We ask for the support of the Minister of National Development Planning to make this regulation a reality," said the Minister of Industry.

The second point raised by the Minister of Industry was the need to change the methodology for calculating Gross Domestic Product (GDP). According to Agus, there are several business classifications (KBLI) that should be under the Ministry of Industry but are currently categorized in other sectors. For example, industrial zones are classified under the property sector, and the workshop subsector falls under trade. The Minister of Industry hopes that the Minister of National Development Planning will facilitate the inclusion of these KBLI, which are currently supported by the Ministry of Industry, in the industrial GDP calculation.

The third topic focuses on the efforts of the Ministry of Industry to maximize added value through manufacturing industries based on natural resources and minerals. The Minister of Industry suggested several commodities that should be included in the National Medium-Term Development Plan (RPJMN). These include sago, essential oils, rattan, and silica, which have significant potential for photovoltaic industry development. However, the Minister acknowledged that not all commodities can be prioritized in the RPJMN.

In response, the Minister of National Development Planning/Head of Bappenas stated that he aims to incorporate these aspirations into policies for developing the manufacturing sector. He mentioned that the industrial tree concept proposed by the Ministry of Industry could help build the industry through both upstream and downstream processes. "Without good upstream processes, there can be no competitive and value-added downstream processes," he said.

Regarding energy, the Minister of National Development Planning/Head of Bappenas argued that there is no reason for energy costs in Indonesia to be higher than in other countries. Therefore, effective policy planning is necessary. Energy policies impact not only the manufacturing sector, which has been a mainstay, but also other sectors.

The Minister expressed hope that this meeting would foster synergy among ministries, leading to a focus on priorities that concern President Prabowo Subianto. "This is not just about creating a competitive industrial sector, but also about utilizing as many local products and local human resources as possible, maximizing our comparative advantages," he concluded.

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Tag: Agus Gumiwang Kartasasmita Bappenas RPJPN