Three Manufacturing Subsectors Are Considered Resilient in Facing the Crisis, What Are They?",

Bisnis.com, JAKARTA – The government's plan to downstream a number of base metal commodities is expected to be a boost to the Indonesian economy amidst the threat of recession, especially with high base metal prices. Bank Permata Chief Economist Josua Pardede said, amidst the weakening economy, there were three subsectors in the manufacturing industry that were still quite resilient despite experiencing a pandemic at the beginning of 2020. The three subsectors were the food and beverage industry; vehicle; and base metal. Josua explained that manufacturing in base metals grew more than 15 percent in the second quarter of 2022, compared to other sectors, even compared to 2019, base metals grew the second fastest. "What is profitable is the increase in utilization of base metals such as nickel and tin. "So the downstreaming of base metals can encourage economic growth," he explained at the Tin Conference last Wednesday (19/10/2022).

"What is profitable is the increase in utilization of base metals such as nickel and tin. "So the downstreaming of base metals can encourage economic growth," he explained at the Tin Conference last Wednesday (19/10/2022). Meanwhile, as the second largest producer and owner of tin reserves in the world, with a share of around 18 percent, it is hoped that Indonesia can become a price maker for world tin prices.

"The future estimate for tin prices will slow down in the next few years, but there are also estimates that there will be an increase in the next few years, estimates from Fitch Ratings. From the World Bank, in 2022 tin is estimated at US$41,000 per ton, next year US$35,000, and in 2024 US$30,000. "The price of tin is expected to be lower than this year, so we have to encourage downstream tin," said Josua.

Josua assessed that with the large economic contribution of tin, the role of the commodity is also important for the Indonesian economy.