Manufacturing sector's growth slows<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
Indonesia's non-oil and gas manufacturing industry has continued
\nto expand quite rapidly this year, but the overall growth rate
\nhas actually been declining during the first three quarters of
\nthe year, a report revealed on Monday.<\/p>\n
As of September 2005, the manufacturing sector grew by 6.76
\npercent, as compared to 7.7 percent during the January-June
\nperiod and 7.0 percent in the January-April period, figures from
\nthe Ministry of Industry showed.<\/p>\n
The growth however, remains on tract to meeting the full-year
\ntarget of 6.8 percent.<\/p>\n
\"We are very close to reaching the target,\" said Minister of
\nIndustry Andung Nitimihardja.<\/p>\n
\"If there had been no external factors such as the fuel price
\nhikes, the sector could have exceeded the current figure,\" he
\nargued.<\/p>\n
\"Despite the current obstacles, the growth of the sector could
\nstill meet this year's target of 6.8 percent.\"<\/p>\n
Fluctuating exchange rates, fuel prices hikes and the current
\nhigher loan interest rates were among the reasons behind the
\nslower pace of growth, said Budi Darmadi, the ministry's director
\ngeneral for automotive, information and telecommunications
\nmanufacturing industries.<\/p>\n
\"But, it is more important that we can still reach the
\ntarget,\" he added.<\/p>\n
The data showed that the automotive, electronics and
\ninformation and telecommunications manufacturing sub-sector had
\nexperienced substantial growth of 12.8 percent as of September.<\/p>\n
Two other sub-sectors, chemicals and agriculture-based
\nindustries, also exceeded their targets, with the latter
\ncontributing some 27.4 percent, thereby making up the lion's
\nshare of overall growth.<\/p>\n
Meanwhile, the chemical and cement industries expanded by 10.7
\npercent and 6.98 percent respectively. As of June, however, the
\ntwo sectors had experienced higher growth of 13.1 percent and 9.4
\npercent respectively.<\/p>\n
Other areas experiencing healthy growth, Andung said, were
\nboth foreign and domestic investment, imports of capital goods,
\nand exports.<\/p>\n
According to data from the Capital Investment Coordinating
\nBoard (BKPM), as of September 2005, total foreign direct
\ninvestment increased to US$3.1 billion from $2.8 billion in the
\nsame period last year. Meanwhile, domestic investment reached Rp
\n8.5 trillion and was expected to exceed the 2004 figure for total
\ninvestment of Rp 10.5 trillion.<\/p>\n
The new investment was still predominantly in the chemical,
\nfood, metal, machinery and electronics industries.<\/p>\n
Exports from the manufacturing sector increased by 21 percent
\nto $48.3 billion in the first nine months of 2005 from $39.9
\nbillion in the same period last year.<\/p>\n
Imports of capital goods and supporting goods also increased
\nby 30.5 percent to $43.7 billion in 2005 from $33.5 billion
\npreviously.<\/p>\n
The manufacturing sector, Andung added, had hired 580,000 more
\nworkers as of September, adding to the total of 11.07 million
\npeople employed in the sector as of December 2004.<\/p>\n
\"Next year, we will focus on labor-intensive industries and
\nexports. The ministry is now developing clusters of prioritized
\nindustries,\" he said, adding that textiles and garments, and
\nagriculture-based industries would continue to be among those
\nprioritized.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/manufacturing-sectors-growth-slows-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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