"In spite of the economic crises in the United States and European countries, the government is optimistic that the national manufacturing industry will grow by 7.1 percent, with increased investment in the industries of automotive, fertilizer, chemical, and cement," the Minister of Industry, MS Hidayat, said here on Monday.

He pointed out that the lack of infrastructure and the high cost of investment would be the main challenges facing the industrial sector next year.

"In order to overcome the barriers in the industrial sector, the government has been providing fiscal incentives, such as tax reductions in form of `tax holidays` and `tax allowance`, reduction of import duties (BMDTP), and reduction of sales tax on luxury goods (PPnBM)," Hidayat explained.

"Besides, the government is also making efforts to remove investment bottlenecks, such as through spatial developments, in some regions," he continued.

Hidayat said the growth of Indonesia`s manufacturing industry could be maintained by exploring new export markets and controlling the influx of imports.

"Manufacturing industry players should expand their markets to some countries in the Middle East, Africa, Eastern Europe and Latin America. Moreover, the influx of imported goods must be controlled through the strict implementation of the Indonesia National Standard (SNI) and `non-tariff barriers` policy," he pointed out.

Hidayat also urged all government agencies, state-owned enterprises (SOEs), and private companies to promote the use of domestic products.

"The more we use our domestic products, the more demand there will be for them. Of course, this measure must be supported by all stakeholders and policymakers in the country," he said.