Jakarta (ANTARA) - The automotive industry was the backbone of national economic growth, Coordinating Minister for Economic Affairs Airlangga Hartarto stated.

This was apparent from the growth of the processing industry clocked at 4.88 percent (year-on-year/yoy), with a contribution of 18.25 percent to the gross domestic product (GDP). Meanwhile, the transportation equipment industry also grew by 9.66 percent, with a contribution of 1.42 percent to the National GDP, the minister remarked.

"The backbone is the automotive industry," he stated at the opening of the 30th Gaikindo Indonesia International Auto Show (GIIAS) as quoted from a statement received here, Thursday.

According to Hartarto, the transportation equipment industry was one of the industries that always recorded positive growth for nine consecutive quarters from the second quarter of 2021 to the second quarter of 2023.

Furthermore, he noted that based on the latest report from the Institute for Management Development (IMD), Indonesia's competitiveness increased by 10 levels, from 44 to 34, with economic performance as the key.

"This is also the result of the Job Creation Law, a reform in our workforce," he remarked.

To this end, the government continues to encourage growth in exports and encourage carbon reduction in Indonesia by using electric vehicles, he remarked.

The minister is optimistic that the results of this year's GIIAS would increase from the previous year.

During his visit to the GIIAS exhibition at ICE BSD, Tangerang, Hartarto reviewed all the booths and symbolically attached domestic component level (TKDN) certification to one of the original products made in Indonesia that had been showcased at the event.

Indonesia's economic growth in the second quarter of this year reached 5.17 percent (yoy), thereby making its economic growth always surpass five percent for seven consecutive quarters (yoy).

Based on data from the World Bank updated in July 2023, Indonesia is listed in the upper middle-income country group. The Indonesian Manufacturing Purchasing Managers' Index (PMI) in July 2023 also continued its expansionary trend for 23 consecutive months, namely at the level of 53.3.

This achievement reflects the high level of optimism of manufacturing industry players in Indonesia amid the turmoil in global conditions and weakening world markets.

Hartarto also noted that Indonesia's gross national income (GNI) per capita was recorded at US$4,580 and is expected to reach US$5,500 at the end of 2024.

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Translator: Bayu Saputra, Resinta S
Editor: Rahmad Nasution
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