Non-Oil and Gas Processing; Transportation Equipment Industry Shows Highest Growth in 2021

The transportation equipment industry was the non-oil and gas manufacturing subsector that recorded the highest growth throughout 2021.

This subsector's growth was driven by incentive policies, including a 100% reduction in luxury goods income tax (PPnBM) for motor vehicles last year.

Based on data from the Central Statistics Agency (BPS), the non-oil and gas manufacturing industry's gross domestic product (GDP) at current prices (ADHB) amounted to Rp2.95 quadrillion in 2021. This figure constitutes 17.93% of the total national GDP, which amounted to Rp16.97 quadrillion.

Meanwhile, the GDP of the transportation equipment industry subsector reached Rp251.89 trillion, or 8.54% of the non-oil and gas manufacturing industry's GDP. Throughout 2021, the transportation equipment industry grew by 17.82% (year-on-year/yoy). This figure is above the sectoral growth of 3.67% and that of other subsectors.

Other subsectors with the highest growth were the basic metal industry, at 11.5% (yoy); followed by the machinery and equipment industry, at 11.43%; and the chemical, pharmaceutical, and traditional medicine industry, at 9.61%.

Of the 15 non-oil and gas manufacturing subsectors, 9 recorded growth in 2021. The remaining 6 subsectors experienced contraction.

The textile and ready-made garment industry experienced the deepest contraction, at 4.08% (yoy), followed by the wood and wood products industry, which contracted by 3.71% (yoy).