INDONESIA’S MANUFACTURING PERFORMANCE AT THE BEGINNING OF COVID-19 PANDEMIC
Purpose - This study aims to analyze the performance of the manufacturing industry and how the influence of investment and inflation on that performance in the early days of the COVID-19 pandemic. Design/methodology/approach –The performance of the non-oil and gas processing industry is analyzed using the Gross Domestic Product (GDP) of the non-oil and gas processing industry sector. Investment will be reviewed from Foreign Investment and Domestic Investment. Variable Inflation is used as an indicator of price fluctuations in the Indonesian economy. Findings - The analysis reveals the performance of the manufacturing industry, three priority issues: 1. Growth Rate of Non-Oil and Gas Processing Industry Sub-Sector at the start of the COVID-19 pandemic, 2. Realization of Foreign Investment (PMA) and Domestic Investment (PMDN) in the Non-Oil and Gas Processing Industry Sub-Sector, 3. Inflation in Indonesia. Then, how the influence of investment and inflation on that performance in the early days of the COVID-19 pandemic. The priority solution in this finding is to improve the profession, academics, and supporting institutions. Research limitations/implications - This study only examines the problems of 12 sub-sectors of the processing industry at the beginning of the COVID-19 pandemic from the first quarter of 2019 to the third quarter of 2021. This study contributes to the literature by exploring problems and discussing solutions. Practical implications – This study highlights priority issues and discusses solutions to serve as a reference in making policies and strategies for the development of the manufacturing industry in Indonesia. Originality/value – Although there have been several studies in this area, this research is a novelty in examining the problems of the processing industry at the start of the COVID-19 pandemic.
PDB, Growth, Manufacturing Industry, Covid-19 Pandemic, Investment, Inflation.