Indonesia’s Industry Minister Urges Vigilance in the Face of Global Economic Slowdown

Jakarta –

The Minister of Industry, Agus Gumiwang Kartasasmita, reminded that the global economy is not in good condition. He also asked to be aware of this.

“I agree that the global economy is not good and we must be careful and alert and follow developments,” said Agus Gumiwang at the Ministry of Industry, Friday (9/6/2023).

“We all have to be aware of what’s happening globally, especially in the economic field. This is a bad situation, global markets are still weakening,” he added.

Moreover, Europe officially entered the brink of recession. Agus Gumiwang reminded that there will be a decrease in demand for goods from Europe.

The Ministry of Industry (Kemenperin) has coordinated with industry and associations regarding the entry of imported goods into Indonesia. He asked to increase vigilance after Europe officially recession.

“So we must also be vigilant. We all know that there is one region, let’s call it Europe, which is experiencing economic difficulties, so it is certain that the purchasing power of the European people is decreasing,” he continued.

Meanwhile, Agus Gumiwang said Indonesia did not want the industrial sector to decline which would result in layoffs. Although he admits that the target market is getting smaller after Europe’s recession. Indonesia has so far relied on Europe as a traditional export destination market.

He plans to divert export destinations from traditional markets to countries with good growth. He added that industrialized countries would shift their sales goals to countries with large populations.

“The market is getting smaller and smaller. The countries that will be targeted are countries that have a significant population. Those will be invaded by products that are usually absorbed in Europe. Now Europe cannot absorb it. So we will look for other destinations,”

In the domestic market, the Ministry of Industry will strengthen it through the provision of incentives. The targeted sectors are labor-intensive industries in order to minimize layoffs.

“That’s what we will prioritize, we will prioritize industries that have a high multiplier effect, call it labor-intensive for example. Those are the sectors that we will look for incentives so as not to further increase layoffs,” he concluded.

(hns/hns)