indonesia targets 6.7% industry growth

indonesia targets 6.7% industry growth

MS Hidayat. (ANTARA/Yudhi Mahatma)

"The textile industry might underperform."
Jakarta (ANTARA News) - The Indonesian government has expressed optimism that the country`s industrial growth will reach 6.7 percent, driven by the machinery and heavy equipment industry, at the end of this year.

"The growth of heavy equipment and non-metal mining industry has been predicted to reach 8.98 percent at the end of this year, while the food, drink and tobacco industry is expected to touch 7. 03 percent, and the cement and non-metal mining industry is projected to grow 6.92 percent," Industry Minister MS Hidayat said here on Friday.

"The textile industry might underperform," he stated.

"Its performance will be negatively affected by the economic crises in the United States and Europe," Hidayat added.

However, he expressed hope that the textile industry would "soon bounce back".

"The steel industry on the other hand is expected to continue growing at a high rate because of the considerable income it is getting from a number of investments," Hidayat said.

He also noted that some businessmen from China`s steel industry had met with Indonesian government officials to discuss investment possibilities in Kalimantan.

Hidayat pointed out that the nation would only be able to achieve the targeted industry growth if domestic consumption improved.

"If investments increase along with domestic consumption, the industry sector will grow at the targeted rate. But the government will have to develop and implement the right strategies in order to achieve its target," he added.