BPS: Indonesia’s Manufacturing Industries Rises by 4.45% in Q1 2019

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 4 Mei 2019
Category: News
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Minister of Industry Airlangga Hartarto. (Photo by: IST).

Minister of Industry Airlangga Hartarto. (Photo by: IST).

The Central Statistics Agency (BPS) has reported that Indonesia’s manufacturing industry has been increasingly productive and competitive.

The BPS report also shows the production of large and medium manufacturing industries (IBS) in the first quarter of 2019 rose by 4.45 percent, compared to that in the same period last year which was only 4.07 percent.

“Based on the Making Indonesia 4.0 road map, textile and clothing industries are included in the five sectors prepared to become the mainstay in implementing industry 4.0 in Indonesia,” Minister of Industry Airlangga Hartarto said in Jakarta, Friday (3/5).

The increase in the IBS production, the Minister continued, was triggered by the apparel industry sector which rose by 29.19 percent as a result of a large number of orders, especially from the export market.

“In 2018, TPT (textiles and textiles product) industry became a significant foreign exchange earner with export value reaching US$13.22 billion, up 5.55 percent compared to that in last year. In addition, the TPT industry has provided employment for 3.6 million people,” he added.

According to Airlangga, another IBS sector whose production grew rapidly was beverage industry which rose by 24.8 percent, followed by printing and reproduction industry of recording media of 21.44 percent, tobacco processing industry of 17.19 percent, and furniture industry of 12.92 percent.

The Minister also expressed optimism that the textile and food and beverage industry will also grow steadily in the first semester this year. “The increase in consumption is mainly in the domestic market due to the elections and the fasting month Ramadan,” he added.

Meanwhile, production growth of the micro and small manufacturing industries (IMK) in the first quarter this year rose by 6.88 percent compared to that in the same period last year. The figure also increased by 4.55 percent compared to that in the fourth quarter of 2018.

On an annual basis, the BPS noted, the increase in IMK was driven by production of printing and reproduction media of recording media by 29.63 percent and production of computer, electronics and optical industry which rose by 15.76 percent.

In the meantime, the stretch of the Indonesian manufacturing industry is also seen from the purchasing manager index (PMI) achievement released by the Nikkei in April 2019 which reached at 50.4 points. The Nikkei reported that exports rose for the first time in a year and half as well as the rise in the number of workers. Furthermore, business sentiment remains positive and cost pressures have eased.

“Manufacturing industry is the backbone of national economic growth. In addition, it is a mainstay sector in spurring equity towards development and inclusive community welfare,” Airlangga said. (Ministry of Industry PR/ES)



Translated by: Galuh Wicaksono
Edited by: Muhardi/Muhammad Ersan Pamungkas

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