Publication and Book Launch 'Indonesia Manufacturing Review'
Indonesian Ministry of National Development Planning (PPN/Bappenas) has collaborated with Economic Research Institute for ASEAN and East Asia (ERIA) to complete a study titled ‘Kajian Sektor Manufaktur (Manufacturing Sector Review)’. This study has started in 2018 and been a part of a background study for Indonesian Mid-term National Planning (RPJMN) 2020-2024 for manufacturing industries. This study has also been updated to cover issues on manufacturing sectors during COVID-19 pandemic. Analysis used in this study involved secondary data analytics and focus group discussions with related ministries/government institutions, major manufacturing industry players and academicians, and other stakeholders.
Industry sector is one of the main drivers of Indonesian economy. Manufacturing sector has constantly made up for around 20% of Indonesian GDP and non-oil and gas manufacturing contribution to export has increased rapidly to around 50% since around 1990s. Industrialization has been one of strategies to transform Indonesian economy to be more inclusive and sustainable. On the other hand, during COVID-19 pandemic, manufacturing sectors had suffered multiple drawbacks, from the decline in production to value chain disruptions, sales decline, labor cut-off, and bankruptcy. In 2020, manufacturing sector’s rate of GDP growth contracted by 2.5% (y-o-y), but in Q2-2021, the figure has improved to 6.6% (y-o-y).
One of strategies to improve Indonesian manufacturing sector performance is constructing a solid and comprehensive planning of manufacturing sector development. The policy directions shall cover analysis on relevant issues, opportunities, and challenges faced by each sub-sectors in manufacturing industries. This study focused on five sub-sectors, which are (i) food and beverage industry; (ii) textile, garment, and footwear industry; (iii) automotive industry; (iv) chemical industry; and (v) metal industry. Moreover, this study also provided an up-to-date analysis on current challenges, especially on (i) technological advancement; (ii) human resources and labor; (iii) global value chain; (iv) a review on sub-sectors in manufacturing sector and their auxiliary services; (v) export and utilization of Free Trade Agreement (FTA); (vi) energy availability; and (vii) financial support system. This study also provided policy suggestions to support the growth and development of manufacturing industries.
Date and Time:
Wednesday, 17 November 2021,13:00 PM- - 15:20 PM (UTC +7)
Location:
Online (link to the meeting room to be provided after registration)
Agenda:
Time | Event | Speaker/Moderator/PIC |
13.00 – 13.05 | Opening | |
| 13.05 – 13.10 | Brief Report by Bappenas | Economy Deputy at Indonesian Ministry of National Development Planning / Bappenas |
| 13.10 – 13.20 | Opening Remarks | Dr. (H.C.) H. Suharso Monoarfa Minister of PPN/Chief of Bappenas |
| 13.20 – 13.30 | Opening Remarks | Prof Hidetoshi Nishimura President of Economic Research Institute for ASEAN and East Asia (ERIA) |
| 13.30 – 14.00 | Indonesian Manufacturing Review – Study Results | Dionisius A. Narjoko, Senior Economist, ERIA |
| 14.00 – 14.15 | International Production Network post the Covid-19 Pandemic | Fukunari Kimura, Chief Economist, ERIA |
| 14.15 – 14.50 | Discussion session by discussants | Discussants:
Moderator, Director for Industry, Tourism, and Creative Economy, Indonesian Ministry of National Development Planning / Bappenas |
| 14.50 – 15.10 | Q&A Session | Moderator, Director for Industry, Tourism, and Creative Economy, Indonesian Ministry of National Development Planning / Bappenas |
| 15.10 – 15.15 | Conclusion | Economy Deputy, Indonesian Ministry of National Development Planning / Bappenas |
| 15.15 – 15.20 | Closing |
Note:
This event will be held in a bilingual manner (English and Bahasa Indonesia).