Indonesia's manufacturing industry records 4.87 percent growth

Indonesia's manufacturing industry records 4.87 percent growth

Industry Minister Airlangga Hartarto. (ANTARA News/ Industry Ministry's photo)

Jakarta (ANTARA News) - Indonesia's manufacturing industry has recorded an aggregate growth of 4.87 percent from 2015 to 2018, with the highest growth in the food and beverage sector, at 8.71 percent, during the period.

"The gross domestic product value of the non-oil and gas manufacturing industry has reached Rp2,555.8 trillion in 2018, and this (trend) has continued each year," Industry Minister Airlangga Hartarto stated here on Wednesday.

In addition to the food and beverage industry, other sectors that showed higher growth are the metal industry, computer, electronic goods, machinery, and devices, at 4.02 percent; transportation industry, 3.67 percent; chemical industry, 3.40 percent; and textile and garment industry, 1.64 percent.

Hartarto remarked that the manufacturing industry had contributed some 19.89 percent to the country`s economy, the highest as compared to other industries.

"If we want to improve our economic growth, the manufacturing industry should become the focus of improvement," Hartarto stated.

The non-oil and gas manufacturing industry has contributed 72.8 percent to the country`s total exports in 2018.

"There is a deficit, and of course, we will make improvements to cut this, especially in investment and import substitution," he added.

In terms of investment, Airlangga stated that investment in industry had reached Rp226.18 trillion in 2018, with contribution from the metal industry, computer, electronic goods, machinery, and devices reaching Rp58.20 trillion.

Contribution of the food and beverage industry has reached Rp56.20 trillion; chemical industry, Rp48.69 trillion; transportation industry, Rp17.44 trillion; and textile and garment industry, Rp8.75 trillion.

Secretary General of the Ministry Haris Munandar noted that the country`s industry sector is expected to grow to five percent in 2018.

"We hope that it would reach five percent by the end of the year," Munandar noted.

The ministry has set the growth target of the non-oil and gas manufacturing industry at 5.67 percent in 2018.

During the first quarter of the year, the industry has recorded an increased growth of 5.03 percent, from 4.80 percent in the same period of 2017.

The growth in the second quarter of the year has reached 4.41 percent, increasing from the previous year`s growth of 3.93 percent during the same period.

Reporting by Sella Panduarsa Gareta
Editing by Sri Haryati, Yoseph Hariyadi
 

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