Manufacturing industry makes impact on economic growth

Manufacturing industry makes impact on economic growth

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Jakarta (ANTARA News) - The manufacturing industry was consistent in making an impact on national economic growth, according to Industry Minister Airlangga Hartarto.

"Among other things, foreign exchange earnings from exports, taxes and excise, and quite a lot absorption of labor," Hartarto said after becoming the inspector of ceremony at the Commemoration of the 73rd Anniversary of the Republic of Indonesia at the Ministry of Industry here on Friday.

The minister of industry explained that the processing industry became the largest contributor to the national Gross Domestic Product (GDP), with a value reaching 19.83 percent in the second quarter of 2018.

Meanwhile, for the growth of the non-oil and gas processing industry, the figure was 4.41 percent, higher than the achievement in the same period last year, which was 3.93 percent.

The sectors that underpinned the growth of the non-oil and gas processing industry in the second quarter of this year include the rubber industry, goods from rubber and plastics which grew by 11.85 percent, followed by the leather industry, leather goods and footwear by 11.38 percent.

Furthermore, the growth of the food and beverage industry penetrated 8.67 percent, and the textile and apparel industry reached 6.39 percent.

The performance of these manufacturing sectors is able to surpass national economic growth.

"Of course, now we must look forward; the manufacturing sector is one of the spearheads of the Indonesian economy because its contribution reaches 18-20 percent.

"So, we remain focused on strengthening the real sector in the country," he explained.

Meanwhile, judging from the trade balance, the natural resource-based industry still shows a positive performance.

In May 2018, the manufacturing sector that experienced a surplus was the wood, wood and cork industry amounting to 387.32 million US dollars, the paper and goods industry at 310.71 million US dollars, and the 101.90 million US dollar furniture industry.

In addition, other sub-sectors, the apparel industry also showed a trade surplus of 696.29 million US dollars.

Reporting by Sella Panduarsa Gareta
Editing by Otniel Tamindael
 

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