By: Andika Simangunson )*
In recent years, collaboration between the public and private sectors has increasingly become the main key in driving economic revival and expansion of the manufacturing industry in Indonesia. With increasingly complex global challenges, cross-sector cooperation is more important than ever to strengthen the country’s economic foundations.The Minister of Industry, Agus Gumiwang Kartasasmita, is optimistic that the processing or manufacturing industry can become expansive again through increased coordination and implementation of regulations that support the industry. Agus explained that unstable global economic conditions also influenced domestic industrial activities, exacerbated by regulations that did not support industrial players. Therefore, strong and targeted coordination is needed.In the first plenary cabinet session held in the capital city of the archipelago (IKN), East Kalimantan, Agus revealed that President Joko Widodo reminded them to be wary of a decline in the Purchasing Manager’s Index (PMI) figure for Indonesian manufacturing, which in July 2024 will be at 49.3 points, indicating a phase contraction after previously remaining at the expansion level for 34 consecutive months.Agus also said that the President emphasized the need to be alert to the manufacturing PMI contraction which was also experienced by several countries in Asia, especially the output component which experienced a significant decline.Apart from that, the high burden of importing raw materials due to fluctuations in the rupiah exchange rate and attacks on imported products also affected domestic demand. The President emphasized the importance of using local raw materials and protecting domestic industry, as well as the need to look for non-traditional markets and potential new markets as export destinations for Indonesian products.Agus also believes that the performance of the manufacturing industry in Indonesia can still recover if it is supported by pro-business policies, such as the availability of production raw materials, the sustainability of competitive industrial gas prices, and firmness in import substitution. This policy can be implemented well if coordination is carried out according to the rules, with consistency and transparency to support domestic industry.The government plays an important role in creating a conducive environment for inter-sector collaboration. Through policies that support partnerships between the government, private sector and society, the government seeks to increase investment and accelerate infrastructure development that supports the growth of the manufacturing industry.Minister of Finance, Sri Mulyani stated that manufacturing producers in Indonesia remain optimistic that sales and production will increase, in line with hopes of strengthening market conditions next year.Together with the Minister of Trade and the Minister of Industry, who are responsible for the manufacturing sector, trade logistics and business competition, the government will provide support through various instruments at its disposal. The government will also continue to support the industry with various measures, especially if it faces attacks on imports that involve unfair trade practices. In such situations, the government will take necessary corrective steps.Cooperation between the government and the private sector has proven effective in accelerating the realization of strategic projects, such as building industrial areas, developing technology and improving the quality of human resources. By utilizing the expertise and resources of each party, this collaboration is able to overcome various obstacles that hinder economic growth.Collaboration encourages increased investment, both from within and outside the country. With legal certainty, fiscal incentives and government support, investors feel more confident to invest capital in Indonesia’s manufacturing sector, which in turn encourages expansion and job creation.The expansion of the manufacturing industry brings many benefits to the national economy, including increasing state income, reducing imports, and increasing exports. With the increasing development of the manufacturing industry, Indonesia has greater opportunities to compete in the global market.The Government has issued various policies and regulations that support this collaboration, including tax incentives, ease of licensing, and infrastructure support. These policies are designed to create a business ecosystem that is conducive to the growth of the manufacturing industry.Massive infrastructure development, including roads, ports and logistics facilities, is an important foundation for the expansion of the manufacturing industry. Collaboration between the government and the private sector in infrastructure development ensures that industrial needs can be met efficiently.Although collaboration has brought much progress, there are still challenges that need to be overcome, such as complicated bureaucracy, infrastructure disparities between regions, and environmental problems. Closer and more innovative collaboration is needed to overcome these challenges and ensure sustainable growth.By continuing to strengthen cross-sector collaboration, optimism regarding economic revival and expansion of the manufacturing industry in Indonesia is increasing. Support from various parties ensures that the manufacturing industry will continue to grow and become a driving force for the national economy.So collaboration between the government, private sector and society is the key to increasing optimism regarding economic revival and expansion of the manufacturing industry. With strong synergy, Indonesia can take advantage of new opportunities, overcome existing challenges, and ensure inclusive and sustainable economic growth.Through strong synergy, this country can optimize new opportunities, face challenges more effectively, and ensure inclusive and sustainable economic growth for all levels of society. )* The author is a journalist at Quantum Leap Management
