Manufacturing Industry Still Successful in Quarter II-2018

By : Ridwan And Aldi Firhand. A | Tuesday, August 07 2018 - 18:59 IWST

Illustration Manufacturing Industry (Photo Dok
Illustration Manufacturing Industry (Photo Dok - Jakarta, the non-oil and gas processing industry still shows a positive performance, where in the second quarter of 2018 it grew to 4.41 percent or higher than the achievement in the same period last year of 3.93 percent.

In fact, the manufacturing sector is consistently the largest contributor to the national Gross Domestic Product (GDP), which was recorded at 19.83 percent in the second quarter 2018.

"Of course now we must look forward, that the manufacturing sector is one of the spearheads of the Indonesian economy because its contribution reaches 18-20 percent. So, our economic growth depends on the manufacturing sector," Industry Minister Airlangga Hartarto said here on Tuesday (7 / 8/2018).

The sectors that underpin the growth of the non-oil and gas processing industry in the second quarter of this year include the rubber industry, goods from rubber and plastics which grew by 11.85 percent, followed by the leather industry, leather goods and footwear by 11, 38 percent.

Furthermore, the growth of the food and beverage industry penetrated 8.67 percent, and the textile and apparel industry reached 6.39 percent. The performance of these manufacturing sectors is able to surpass national economic growth.

Airlangga said that the momentum of Eid and Region Election this year had a positive impact on rising domestic demand resulting in an increase in production in a number of manufacturing sectors, such as the food and beverage industry, the textile and textile products industry, the footwear industry, and the printing industry.

"Moreover, next year there will be elections, more product demand," he said.

Referring to the Central Statistics Agency (BPS) data, the production growth of large and medium manufacturing industries showed an increase in the second quarter of 2018 of 4.36 percent year-on-year (y-o-y) against the second quarter of 2017. Meanwhile, the production growth of micro and small manufacturing industries in the second quarter of 2018 also experienced a 4.93 percent increase (y-on-y) against the second quarter of 2017.

Meanwhile, the Nikkei Indonesia Manufacturing Purchasing Managers Index (PMI) survey also showed that the PMI index in July 2018 rose to 50.5 compared to June 2018 which reached 50.3. The PMI index above 50 indicates the industry is able to expand.

"The increase in PMI is very positive, proving that our manufacturing industry is wriggling. So, we must guard and continue to push to be more productive and competitive," said Airlangga.

Nikkei also stated that as of July, the number of new businesses in Indonesia rose for six consecutive months. In addition, the level of employment in Indonesia's manufacturing sector also rose for two consecutive months.

The Minister of Industry is optimistic that the growth of the national manufacturing industry will increase in the third quarter or second semester of 2018. Therefore, the government continues to strive to create a conducive business climate in the country so that companies can be more aggressive and expansive so that they can meet the needs of the domestic market and export.

"We believe that in the next semester there will be an increase due to industries related to the mining sector, its performance will improve along with the increase in commodity prices," said Airlangga.

News Comment

Today's Industry

President Joko “Jokowi” Widodo Wednesday (16/06) inspected mass COVID-19 vaccination for workers in financial service sector held at Tennis Indoor Senayan, Jakarta

Kamis, 17 Juni 2021 - 20:10 WIB

President Jokowi Inspects Mass COVID-19 Vaccination for Workers in Financial Sector

President Joko “Jokowi” Widodo Wednesday (16/06) inspected mass COVID-19 vaccination for workers in financial service sector held at Tennis Indoor Senayan, Jakarta.

Minister of Manpower Ida Fauziyah delivered a statement in the Presidential Office, Monday, (10/8). Photo by: BPMI

Kamis, 17 Juni 2021 - 19:00 WIB

Manpower Minister Tells Companies to Reinforce Health Protocols

Companies must continue to enforce strict health protocols in the workplace, particularly amidst the recent spike in COVID-19 cases in several regions, Minister of Manpower Ida Fauziyah has…

President Jokowi inaugurates Indonesia’s Export Release to the Global Market online at Bogor Presidential Palace, West Java (04/12/2020). (Photo by: Press Media and Information Bureau of Presidential Secretariat/Lukman)

Kamis, 17 Juni 2021 - 17:55 WIB

Indonesia Reports Upward Trend Economic Recovery

The Government has announced that Indonesia economic recovery will continue in line with the positive trend of exports and imports. For the record, Indonesia’s exports in May 2021 reached…

International Labour Organization (ILO)

Kamis, 17 Juni 2021 - 16:20 WIB

Indonesia Elected Member of ILO Governing Body

Indonesia has been chosen as a regular member of the Governing Body (GB) of the International Labour Organization (ILO) for the 2021-2024 period and will represent the Asia Pacific region along…

Minister of Home Affairs Tito Karnavian. Photo by: PR of Cabinet Secretariat

Kamis, 17 Juni 2021 - 15:40 WIB

Gov’t Extends Micro-Scale Restrictions to 28 June

The Government has decided to extend the implementation of Micro-Scale Activity Restrictions (PPKM Mikro) from 15 June to 28 June 2021.