Manufacturing Industry: Leather and Footwear Industry Production Shows Highest Growth

Output of large and medium-scale manufacturing industries in the second quarter of 2018 showed growth compared to both the second quarter of 2017 and the first quarter of 2018. Statistics Indonesia recorded a 4.36% year-on-year (YoY) growth in the output of large and medium-scale manufacturing industries during the second quarter of this year. Similarly, compared to the first quarter of 2018, the growth in the output of large and medium-scale manufacturing industries increased by 1.49%.

This increase was driven by the growth in the production of the leather, leather goods, and footwear industry in the second quarter of this year, which reached 27.73% compared to the same quarter of the previous year (YoY). This growth in the leather industry was the highest compared to other sub-sectors, such as the rubber industry, which recorded 17.28% growth, and the beverage industry, which recorded 15.41% growth.

Of the 23 sub-sectors in the large and medium-scale manufacturing industry, 10 sub-sectors showed output growth above the industry average (4.36%), while the remaining 13 sub-sectors were below average. Eight sub-sectors even experienced negative growth, such as the chemical industry (-4.94%), the computer and electronic goods industry (-8.85%), and, most significantly, the machinery repair and installation industry (-11.37%).

(Read Databoks: Since 2012, Industrial Sector Growth Below National GDP)