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.

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