Industrial sector contributes 19.52 percent to economic growth

Industrial sector contributes 19.52 percent to economic growth

Industry Minister, Airlangga Hartarto (ANTARA/Hanni Sofia/Su)

Jakarta (ANTARA) - The industrial sector contributed the most at 19.52 percent to the national economic growth of 5.05 percent in the second quarter of 2019.

"Our manufacturing industry is growing positively. The spirit and trust of business agents to invest and expand their businesses is also high," Industry Minister, Airlangga Hartarto, said in Jakarta on Tuesday.

According to the Central Statistics Agency (BPS), the manufacturing industry was the largest contributor to the national economic growth in the May-June 2019 quarter, contributing 0.74 percent to the growth.

In the meantime, the agricultural sector contributed 0.71 percent to the economic growth, the trade sector 0.61 percent and the construction sector 0.55 percent.

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Three sectors that supported the non-oil/non-gas manufacturing industry in the second quarter of 2019 were the textile and garment industry which expanded 20.71 percent and the paper and paper product, printing and recording media reproduction industry which grew 12.49 percent.

The textile and garment industry grew significantly, driven by the increasing production in several production centers.

The food and beverage industry grew 7.99 percent, fueled by the rising domestic demand and exports.

The performance of the manufacturing sectors exceeded the economic growth in the same quarter. Overall, the non-oil/non-gas manufacturing industry in the second quarter of 2019 grew 3.98 percent year-on-year (yoy).

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The minister said the textile and textile product industry has increasingly become competitive in the global market because it has a high competitive edge.

The industrial structure of the textile and textile product industry has been integrated from upstream to downstream industries and its products are well known in the international market, he said.

The Indonesian economy expanded 5.05 percent in the second quarter of 2019, indicating a downward trend owing to the continued export contraction and slow investment growth, the BPS stated.

The figure decreased from 5.27 percent during the same period last year and from 5.07 percent in the first quarter of 2019.
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