Indonesia's Industrial Sector Has Yet to Recover

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Viva Budy Kusnandar 11/04/2019 14:43 WIB

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The growth of the non-oil and gas processing industry has consistently lagged behind national economic growth since 2016.

Growth of the Non-Oil and Gas Industrial Sector and the National Economy (2011-2018)

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Growth of the Non-Oil and Gas Industrial Sector and the National Economy (2011-2018)

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The industrial sector has experienced a downward trend in line with the slowing domestic economic growth. In fact, the growth of the non-oil and gas processing industry has been below national economic growth since 2016, as shown in the graph below.

Based on data from the Central Statistics Agency (BPS), the non-oil and gas industrial sector grew above 7% in 2011 but steadily slowed to 4.77% in 2018. This figure was again below domestic economic growth of 5.17%. To stimulate industrial growth, the Ministry of Industry will accelerate five priority industrial sectors this year, in accordance with the Making Indonesia 4.0 roadmap. These five sub-industries are food and beverages, textiles and apparel, automotive, electronics, and chemicals.

For information, the non-oil and gas industrial sector contributed 17.63% to the Gross Domestic Product (GDP) of Rp 14,837 trillion in 2018. The machinery and equipment sub-sector recorded the highest growth at 9.49%. Meanwhile, the chemical, pharmaceutical, and traditional medicine sub-sector experienced a contraction of 1.42%.

"Disclosure: This is an AI-generated translation of the original article. We strive for accuracy, but please note that automated translations may contain errors or slight inconsistencies."

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Indonesia's Industrial Sector Has Yet to Recover

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Indonesia's Industrial Sector Has Yet to Recover

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Impact of the Sumatra Disaster, Indonesia's GDP Could Decrease by IDR 68 Trillion

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