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Ministry of Industry Continues to Encourage the Investment of Plastic and Rubber Industry

03 May 2018 | Author : Manufakturindo
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The Ministry of Industry is attracting investment for the domestic Plastic and Rubber Industry, hoping to boost the industry's growth. Starting from the upstream to downstream sector, the Ministry of Industry aims to strengthen the manufacturing structure in these types of industries in order to increase the added value and reduce the import of raw materials.

General Secretary of the Ministry of Industry, Haris Munandar said that the plastics and rubber industry is the backbone because it is related to other industries, making its position necessary to sustain the national economy.

For this effort, the government has prepared several strategies and one of them is by attracting more investors. Therefore, the government is also preparing several strategies to attract investors by issuing various programs and strategic policies in creating a conducive business climate, as well as providing ease in licensing business.

As for some industries that depend on the plastics and rubber industries such as food industry, machinery industry, automotive industry, and electronics industry. Based on the Law on Industry and RIPIN, the government and stakeholders work together to boost the industry's productivity and competitiveness.

Plastic and rubber industry is believed to be prospective enough to grow in Indonesia. The potential of the national plastic industry is currently supported by 925 companies with total production up to 4.68 million tons per year and employing 37,327 people.

Haris hopes that local plastic products can be hosted in their own country and able to compete in the international market in the future.

Especially for rubber, Indonesia is known as a producer of natural rubber with production reaching 4 million tons per year. With rubber plantation reaching 3.5 million hectares, the production of 4 million tons can still be increased again, supported by R & D programs by government, educational institutions and private parties.

According to Haris, 80% of domestic rubber production is imported out and the rest is only used for domestic needs. Tire products are an export-oriented commodity where 70% of tire production is destined for export market with export value reaching USD 1.5 billion per year.

To produce more competitive products, the government always encourages the application of SNI (Indonesian National Standard), application of Indonesian National Work Competency Standards (SKKNI), and R & D strengthening.

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