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Indonesia’s Industrial sector set to expand 6.1% this year

The government expects non-oil manufacturing industries to grow by 6.1 percent this year, a slight increase from 5.1 percent last year, an Industry Ministry official said.

Industry Ministry secretary general Anshari Bukhari said in Jakarta on Monday that the target
was achievable given the improvement in the country’s manufacturing industry.

“Last year, we targeted 4.65 percent growth and we achieved 5.1 percent growth. Hopefully, we can also surpass our target this year and can reach even 6.5 percent growth,” he said.

Last year the growth of the manufacturing industry doubled 2009’s 2.6 percent. Its contribution to
exports also grew by 33.47 percent
in 2010 after plunging to 16.93 percent in 2009 during the global economic downturn.

However, data at the Central Statistics Agency (BPS) showed that manufacturing’s contribution to economic growth fell to its lowest record in the past decade, 24.8 percent last year from 27 percent in 2008 and 26.4 percent in 2009.

Industry Minister M.S. Hidayat said he was upbeat about reaching the target as several big industrial projects would kick off at the end of the first quarter of this year.

He said the sharp increase in investments would also contribute to the increase in the growth rate for the manufacturing sector.

“The value of those projects exceeds US$15 billion,” he said.

Indonesia’s Chamber of Commerce and Industry (KADIN) has predicted that the national economy could grow 7 percent in 2011, higher than the government’s expectation of 6 to 6.5 percent, partly thanks to encouraging performances in the industrial sector.

Suryo Bambang Sulistyo, chairman of the KADIN, said recently that the growth goal could be achieved as long as it was supported by several government policies that were conducive to an economic and investment-friendly climate

Source : Thejakartapost.com