RI`s industry grew faster than economy in Q3

Jakarta  (ANTARA News) - Indonesia`s industrial growth in the third quarter of 2011 was recorded at 6.98 percent or in excess of the country`s economic growth at 6.54 percent, an industry ministry official said.

The industrial growth figure was the aggregate of a 6.58 percent growth in processing industries and a 1.67 percent growth in the oil and gas industry, said Ansari Bukhari, secretary general of the Industry Ministry here on Thursday.

Ansari said most of the industrial growth had happened in the production of metals, iron and steel, transportation equipment, machinery, and industrial equipment besides textiles , leather goods, and footwear.

Ansari said more detailed data on each industry group`s growth was still unavailable.

In the first semester of 2011 two industry groups dominated the growth figure, namely the base metal, iron and steel industries group and the textile, leather goods and footwear industry group which recorded growth rates of 16.88 percent and 9.22 percent respectively

At the same time, the transportation, machinery, and equipment industry group grew only 6.58 percent and the food, beverages and tobacco group 6.73 percent.

"The increase in industrial growth in the third quarter compared to same period last year was spurred by growth in new investment and expansion," Ansari said.

In 2011, PT Astra Daihatsu Motor (ADM) increased its automotive plant capacity, and a South Korean based company was planning to build a petrochemical industry in Cilegon as part of the previous plant expansion investment.

"The South Korean industry which is running under Lotte Group is still waiting for the 60 hectares of land request is granted in Cilegon industrial area," he said.

Ansari is optimistic with the improving national economy condition would attract that foreign investment.

"The improvements of infrastructure readiness and procurement would also attract foreign investors to Indonesia," Ansari said.