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GINSI Applauds Industry Ministry’s Performance, Seeks Closer Policy Alignment

The Indonesian National Importers Association (GINSI) said it appreciated the performance of the Ministry of Industry of Indonesia in supporting the development of the national industrial sector, while urging closer coordination with business groups in policy formulation.

Erwin Taufan, deputy chairman of GINSI, said on Wednesday the ministry had played a key role in designing and implementing policies aimed at strengthening Indonesia’s industrial base.

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“As a ministry that plays a crucial role in formulating and implementing policies related to the national industrial sector, the Ministry of Industry not only focuses on developing large-scale industries but also pays special attention to fostering and developing small and medium-sized industries,” Taufan said.

However, he said business actors in the import sector hope the government will improve policy harmonization with industry associations to further support industrial growth and competitiveness.

The ministry has also been active in encouraging innovation and technological adoption in manufacturing, including promoting digitalization and automation in industrial processes, Taufan said, adding that such efforts could help improve efficiency and global competitiveness.

Business players have also noted the ministry’s efforts to promote Indonesian industrial products in both domestic and international markets while maintaining economic stability, he said.

According to data from the Ministry of Industry of Indonesia, Indonesia’s industrial sector remained in expansion territory entering 2026, as reflected in the Industry Confidence Index, or IKI, which stood at 54.02.

The reading signals optimism among manufacturers about increasing production, particularly to meet higher demand during the upcoming Ramadan and Eid al-Fitr holidays.

The agro-industry sector continues to serve as the backbone of Indonesia’s manufacturing industry. In 2025, it contributed 52.09% to non-oil-and-gas gross domestic product and about 9% to overall national GDP, with growth reaching 4.95%.

In foreign trade, the agro-industry sector recorded exports of $78.77 billion and imports of $21.19 billion, resulting in a trade surplus of $57.58 billion.

To strengthen the sector, the government has continued implementing a downstream industrial policy based on domestic natural resources, integrating upstream and downstream industries into a connected ecosystem aimed at producing higher value-added products.

Through a regional cluster approach, commodities such as cocoa, sago and coconut are being directed toward processing into derivative products for the food, pharmaceutical, cosmetics and bioenergy industries.

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The strategy is expected to significantly increase the added value of these commodities compared with the export of raw materials, according to industry stakeholders.