National Industries Show More Positive Movements

INDUSTRY.co.id - Jakarta- The performance of the national manufacturing industry still showed a positive movement in November 2017, driven by increased demand from domestic and export markets.

The improved condition is seen in the rise of purchasing managers index (PMI) to 50.4 in November from October at 50.1.

The PMI was released by Nikkei and Markit after surveying some purchasing managers at Indonesian manufacturing companies. A PMI above 50 indicates that manufacturing is expanding, while below 50 suggests manufacturing is in recession.

"The greater market opportunities from both domestic and export need to be optimally utilized by domestic industry players to maintain the momentum of this better growth," said Minister of Industry of Airlangga Hartarto in Jakarta, Sunday (10/12/2017).

Minister of Industry affirmed that the government is building various infrastructure facilities and regulation design which will certainly have a positive impact on the development of business world and society in general.

"There is a need for mutual synergy among the stakeholders to generate inclusive and highly competitive industrial development," he said.

In an effort to achieve the accelerated target of national industrial growth, the Ministry of Industry has six priority programs currently underway. The six programs, namely strengthening human resource competencies through vocational education that link and match between SMK with industry, deepening of industrial structure through strengthening value chain, and development of export oriented labor-intensive industries.

Then, the development of small and medium industries through digital platforms, the development of natural resource-based industries, and the development of industrial areas. "We continue to focus on encouraging the development and competitiveness of national industries to be more competitive in the global arena," said Minister Airlangga.

According to him, the industrial sector brings a broad effect to the national economy through the increase of added value of raw materials in the country, the absorption of local labor, and foreign exchange earnings. In addition, it plays an important role as the largest contributor to economic growth in Indonesia.

Central Bureau of Statistics (BPS) noted, non-oil and gas processing industry still gives the largest contribution to the national Gross Domestic Product (GDP) in the third quarter of 2017 by reaching 17.76 percent.

This contribution is higher than other sectors. Meanwhile, the growth of non-oil / gas processing industry in quarter III / 2017 amounted to 5.49 percent or above from economic growth of 5.06 percent.

Meanwhile, non-oil and gas exports in October 2017 reached USD13.67 billion, up 4.22 percent compared to September 2017. When compared to non-oil exports in October 2016, up 17 percent.

Based on the sector, non-oil and gas exports from January-October 2017 rose 14.32 percent compared to the same period in 2016. The non-oil and gas export destinations are to China, the United States, Japan and the European Union.