Industry Minister optimistic on economic rebound in Q3 2020

Industry Minister optimistic on economic rebound in Q3 2020

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

I am sure (the economy) in the third quarter will rebound.
Jakarta (ANTARA) - Indonesia's Industry Minister Agus Gumiwang Kartasasmita said he is optimistic the economy will improve in the third quarter of 2020, with the manufacturing sector driving growth.

"I am sure (the economy) in the third quarter will rebound," Kartasasmita said in a statement here on Friday.

The government has unveiled several stimulus measures for industry players, including small and medium scale enterprises, to boost their performance, he noted.

"The government has disbursed various stimulus (packages) for the business world, the latest was the abolishment of the minimum electricity cost for industry. We have prepared a special working capital stimulus especially for the industry sector," he elaborated.

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The ministry would continue to work towards improving the manufacturing Purchasing Managers' Index (PMI) so it rises above 50.0 points in the third quarter of the year.

A survey released by IHS Markit has shown Indonesia’s manufacturing PMI in July, 2020 rose to 46.9 from 39.1 a month earlier. The improved reading on the index reflects an improvement in business confidence on the back of better market conditions.

The Central Bureau of Statistics (BPS) has reported a 5.74-percent contraction in non-oil and gas processing industry for the second quarter of 2020 due to the COVID-19 pandemic.

Meanwhile, the Indonesian economy shrank by 5.32 percent year-on-year during the period, as per BPS data.

The industry sector made the largest contribution of 19.87 percent to the Gross Domestic Product during the period.

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