Indonesia plans to open up more sectors to foreign investors and reboot its stringent labor laws to become a regional manufacturing powerhouse rivaling Germany and South Korea, according to Industry Minister Airlangga Hartarto.
President Joko Widodo’s government will rely on automotive, chemicals and electronics industries to push the contribution of manufacturing sector to 25 percent of the nation’s economy by 2025 from 20 percent now, Hartarto said. The move may help boost exports from Southeast Asia’s largest economy and tackle its current account deficit, he added.
“Our target is to be the manufacturing hub of ASEAN,” Hartarto said in an interview in Jakarta on Monday, referring to the Association of Southeast Asian Nations. Indonesia will seek to eclipse Germany and South Korea and match up to China as a base for making everything from electric vehicles to petrochemical products, he said.