Jakarta (ANTARA News) - Industrial growth in Indonesia has continued to decline since 2006 and no longer serves as the locomotive of national economic growth, a national development planning official said.
"Since 2006, the growth of industry has continued to decline and now happens at a rate below the overall economic growth rate. This means that industry no longer serves as the locomotive of economic growth," Bambang Prijambodo, planning director at the National Development Planning Board (Bappenas), said here on Thursday.
He said the decline especially happened in medium- and large- scale industries due to the absence of a blueprint for industrial development in Indonesia.
As recorded by the Central Board of Statistics (BPS), overall economic growth in 2006 stood at 5.5 percent while industrial growth was only 5.27 percent.
Industrial growth in 2007 was down slightly to 5.15 percent while national economic growth rose to 6.3 percent, the highest growth figure since the economic crisis in 1997/1998.
In 2008, the growth of industry declined further to 3.01 percent while economic growth was able to stay at 6.1 percent.
This year, it is estimated that industrial growth would drop drastically. According to data at the BPS, the growth of industry in the third quarter of 2009 would frop 1.3 percent from the figure for the third quarter of 2008.
In the meantime, industrial growth this year was also predicted to fall as a result of the global financial crisis.
Head of the Investment Coordinating Board (BKPM) Gita Wirjawan said that realization of investment projects was predicted to reach only Rp150 trillion or 10 percent of the target of Rp1,500 trillion.
Economic growth in the fourth quarter of 2009 could reach 4.4 percent, according to Bambang Prijambodo.(*)