Industry capacity down, states report

JAKARTA (JP): The country's metal, machinery, electronics and multifarious companies operated at only 58 percent of their total production capacity in the first four months of the year, the Ministry of Industry and Trade said on Thursday.

A ministry report said the figure was far below the precrisis level of 76 percent, although it was better than the average production level of 48 percent in 1998.

"The country's prolonged economic crisis has hit most of the companies involved in the metal, machinery and electronics- related industries. This has forced them to use only half of their production capacity," it said.

The highest utilized production level from January to April was recorded by the textile industry (70 percent), followed by electronics (61 percent), machinery (51 percent), metal (49 percent) and transportation equipment (44 percent).

In 1998, the local textile industry operated at 66 percent of production capacity, electronics 56 percent, metal 40 percent, machinery 37 percent and the transportation industry 50 percent.

Before the crisis hit the country in July 1997, the utilized production level of the local textile industry was 82 percent, machinery 75 percent, metal and electronics 70 percent and transportation 50 percent.

Despite the poor performance, exports of goods produced by metal, machinery, electronics and multifarious industries recorded an increase of 4.7 percent to US$13.67 billion in 1998, compared to $13 billion in 1997.

Exports of metal products rose 38.5 percent to $1.65 billion last year, while exports of machinery increased 8.4 percent to $765.8 million in 1998.

Exports of transportation equipment, including cars, surged 59 percent to $1.12 billion while textile exports increased 0.3 percent to $7.32 billion last year.

However, exports of electronics goods fell 10.2 percent to $2.38 billion in 1998.

Imports of goods related to metal, machinery, electronics and multifarious industries dropped 36.26 percent to $14.7 billion in 1998 from $23 billion in 1997.

Hardest hit was the transportation industry, with imports tumbling 51.5 percent to $2.66 billion in 1998. (gis)