The downstream processing industry currently contributes 19.5 percent of the country's gross domestic product (GDP), BPS Chief Suhariyanto remarked at a working meeting with the House of Representatives’ (DPR’s) Commission XI in Jakarta on Wednesday.
"The key is here. Even if the processing industry grows a little bit, it can boost economic growth since it contributes 19.5 percent (of the GDP)," he stated.
The processing industry also creates 14 percent of the total job opportunities, thereby indicating that a slowdown in the processing industry will weigh heavily on the national economic growth, the BPS chief affirmed.
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Suhariyanto pointed out that until the second quarter of 2019, positive growth was recorded in the textile, garment, and paper industries, while growth of the rubber industry hovered around the negative zone.
The government must augment development of the downstream processing industry to create as many jobs as possible that will ultimately increase the income and boost the public’s purchasing power.
Suhariyanto cautioned that Indonesia can no longer exceedingly depend on exports to push economic growth. In the backdrop of global economic uncertainty, exports are projected to contribute 3.7 percent of the national economic growth in 2020.
"With this global economic uncertainty, the country will face difficulties in boosting exports in the short run. We want to stress how to spur domestic consumption," he added. Related news: Indonesia prepares road map on machinery industry development
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Translator: Mentari Dwi Gayati/Suharto
Editor: Fardah Assegaf
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