INDEF: The Industry Portion of the Year is Being Low Since the Reform Era

By : Ridwan And Aldo Bella Putra | Thursday, December 28 2017 - 23:30 IWST

Industri Tekstil
Industri Tekstil

INDUSTRY.co.id - Jakarta, The national industry growth in 2017 underwent a slowdown so it is projected to grow an average of 4 percent or below the industry growth of 5.05 percent.

This was revealed by Bhima Yudhistira Adhinegara Economist Institute for Development of Economics and Finance (INDEF) when contacted INDUSTRY.co.id in Jakarta, Thursday (28/12/2017).

In addition, Bhima regretted that the manufacturing industry's share of GDP continues to decline to below 20 percent.

"The industry's share this year is the lowest since the reform era, which is dangerous," Bhima said.

According to him, the factors make the industry performance sluggish influenced by the weak purchasing power of the people, especially the middle class down.

"Household consumption is only able to grow 4.9 percent," he explained.

In terms of incentives, he continued, 16 policy packages were not felt by industrial actors. "The price of cheap gas, tax allowance and tax holiday implementation is still not optimal," said Bhima.

Bhima added that infrastructure projects are considered minimized to the absorption of industrial output. "The proof is that the cement condition is still oversupply, the base metal industry is still slowing down," he said.

Bhima expects in 2018 the growth of the industrial sector could be above 5 percent, this is driven by the political year and the rising purchasing power and the improvement of export of finished goods.

"The beverage processing, tobacco, footwear and textile processing industries are supporting the industry's improvement next year," he concluded.

Previously, the Ministry of Industry targets the growth of non-oil and gas processing industry in 2018 of 5.67 percent.

This achievement will be driven by all subsectors, especially basic metal industries, food and beverages, transportation equipment, machinery and equipment, pharmaceuticals, chemicals, and electronics. In addition supported is also the development of industrial parks in various regions in Indonesia.

News Comment

Today's Industry

Kepala Bappenas Bambang Brodjonegoro. (Foto: IST)

Kamis, 20 September 2018 - 16:00 WIB

Society Must Use Technology to Support Economic Growth

Jakarta - Minister of National Development Planning / Head of Bappenas Bambang Brodjonegoro said Indonesia must be able to utilize technology to encourage higher economic growth.

Dirut Perum Bulog Komjen Budi Waseso (Industry.co.id)

Kamis, 20 September 2018 - 16:00 WIB

Buwas Affirmed that Rice Warehouse Affairs Are Not Only By Bulog

Jakarta - Perum Bulog President Director Budi Waseso said the imported rice storage warehouse was not only handled by the Bulog but also all related stakeholders, including the Ministry of Trade.

Ilustrasi Pendaftar CPNS

Kamis, 20 September 2018 - 16:00 WIB

878 Formation for High School Graduates, Kemenkumham Opens Recruitment of 2,000 CPNS

Jakarta, According to the Decree of the Minister of Administrative Reform and Bureaucratic Reform (PANRB) Number 42 of 2018 dated 2018, the Ministry of Law and Human Rights (Kemenkumham) opens…

Bank Bukopin (Foto Dok Industry.co.id)

Kamis, 20 September 2018 - 15:30 WIB

Bank Bukopin Aiming at 300 Thousand Migration Debit Cards to Chip

Jakarta - Bank Bukopin accelerates the transfer of debit cards in the form of chips for data security during transactions anywhere. The target of 300,000 targeted cards will be migrated until…

Restu Pratiwi Ketua Umum Yayasan Danamon Peduli (Foto Dok Industry.co.id)

Kamis, 20 September 2018 - 15:00 WIB

Danamon Peduli Foundation Promotes the People's Market Festival in Banjarmasin

Banjarmasin-Danamon Peduli Foundation ("Danamon Peduli") once again held the Banjarmasin 2018 Folk Market Festival (FPR), entitled "Bakukung ka Pasar" or which means an invitation to visit traditional…