Industry capacity down, states report

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)