Indonesia revises industrial growth target downwards to 2.6 percent

Indonesia revises industrial growth target downwards to 2.6 percent

Industry Minister Agus Gumiwang Kartasasmita. (ANTARA/HO-the Industry Ministry/am/sh)

If economic growth ranges between 2.4 to 2.5 percent, (the growth) in the industry sector will be at 2.5 to 2.6 percent
Jakarta (ANTARA) - Indonesian Industry Minister Agus Gumiwang Kartasasmita has revised the growth target for the industrial sector for 2020 to 2.5-2.6 percent from 5.3 percent on account of the COVID-19 pandemic.

The novel coronavirus pandemic has so far hit 218 countries, including Indonesia.

"If economic growth ranges between 2.4 to 2.5 percent, (the growth) in the industry sector will be at 2.5 to 2.6 percent," Kartasasmita said in a teleconference here on Tuesday.

However, in the worst-case scenario which projects a 0.5-percent economic contraction, industrial growth is expected to reach 0.7 to 0.8 percent, the minister informed.

The minister expressed hope that the manufacturing industry would survive the impact of the pandemic despite pressures in March, 2020, especially as the industry contributes 78.96 percent to national exports.

"There are some (positive) records regarding the exports of the manufacturing industry in the first quarter of 2020 compared to exports in 2019. The food industry has recorded a significant increase (in exports), like the basic metal industry. Garment exports have declined, but (shipment of) rubber and rubber products has increased slightly," Kartasasmita said.

The data on manufacturing exports for the January-March quarter has been promising, he noted.

"Unfortunately, such a good performance was impeded by the COVID-19 pandemic. We will overcome this situation together, Insya Allah (God willing) we will win," Kartasasmita added.  

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