Indonesia's capacity utilization recovers: Industry Ministry

Indonesia's capacity utilization recovers: Industry Ministry

Industry Minister Agus Gumiwang Kartasasmita. The industry sector has been badly hit by the COVID-19 pandemic, with industrial capacity usage dropping 40 percent from 76.29 percent in January-March, 2020. (ANTARA/HO-Industry Ministry/sh)

Industrial utilization during April-October 2020 has recovered to 56.50 percent.
Jakarta (ANTARA) - Indonesia’s industrial capacity utilization recovered and increased to 56.50 percent during the April-October period this year, head of industry research and development at the Industry Ministry, Doddy Rahadi, said.

"Industrial utilization during April-October, 2020 has recovered to 56.50 percent," Rahadi said here on Wednesday.

The sector has been badly hit by the COVID-19 pandemic, with industrial capacity utilization dropping 40 percent from 76.29 percent in January-March, 2020, he added.

However, it recovered slowly after the government launched stimulus packages to fight the impact of the coronavirus pandemic, he noted.

In the third quarter of the year, the growth of the non-oil and gas processing industry contracted 4.02 percent, but it still showed an improvement compared to growth in the second quarter, which shrunk 5.74 percent.

The growth was supported by positive growth in other industries such as chemical, pharmaceutical, and traditional medicines, which showed 14.99 percent growth, basic metal 5.19 percent, other processing industry 1.15 percent, and food and beverage 0.66 percent.

Between January and September this year, exports in the industry sector booked a surplus of US$8.8 billion, with three industries recording the largest contribution — food and beverages with US$21.38 billion, basic metal US$16.96 billion, and chemical and chemical goods US$9.54 billion.

Investment during the period reached Rp201.9 trillion, with the largest contribution coming from the basic metal industry (Rp69.79 trillion), food and beverages (Rp40.53 trillion), and chemical and pharmaceutical industry (Rp35.63 trillion).

Industry has been a strategic sector for the country's economy with the contribution of non-oil and gas processing to Gross Domestic Production at 17.90 percent, the largest share compared to any other sector, Rahadi said.

The sector absorbed 24.70 million workers in August this year, mostly in the food and beverage industry, which hired 4.72 million workers. 

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