Growth of Manufacturing Industry Falls Short of Expectation, BI Says

Bank Indonesia (BI) Senior Deputy Governor Mirza Adityaswara

Jakarta, 10 Sha’ban 1438/7 May 2017 (MINA) – The growth of the Indonesian manufacturing industry, which reached 4.21 percent year-on-year (y-o-y) in the first quarter of 2017, fell short of expectation, Bank Indonesia (BI) Senior Deputy Governor Mirza Adityaswara said.

The manufacturing industry makes up 20 percent of the Indonesian economy, making it one of the biggest contributors of the national economic growth, Antara News quoted Adityaswara as stating here on Friday.

In view of its huge contribution to the Indonesian economy and the character of the national economy endowed with abundant natural resources, the manufacturing industry should grow at a faster pace of 3.25 percent as it did a few years ago, he noted.

Meanwhile, the information and communication sector grew 9.1 percent (y-o-y), and the agricultural, forestry, and fisheries sectors rose 7.12 percent (yoy).

“Hence, we hope that the governments wish to ease the licensing procedure in the manufacturing industry will have a significant impact,” he remarked.

The growth of the manufacturing industry in the first half of this year may send a signal to the government that the economic structure reform may run consistently.

Manufacturing industry reform emphasizes the processing of raw materials or natural resource materials into goods with added value in order to increase export value and create more jobs.

Compared to the fourth quarter of 2016, the manufacturing industry in the first quarter of 2017 only grew 0.52 percent.

The Indonesian economy grew 5.01 percent y-o-y in the first quarter of 2017. (T?RS5/RS1)

Islamic News Agency (MINA)