Kedutaan Besar Republik Indonesia
Ottawa
Embassy of the Republic of Indonesia
Ambassade de la RÉpublique d'Indonésie

Manufacturing sector remains biggest growth contributor

The manufacturing sector remains the biggest contributor to economic growth in Indonesia, Central Statistics Agency (BPS) data show.

The sector contributed 0.92 percent to total economic growth of 5.02 percent last year. Other contributing sectors were trade with 0.53 percent, followed by construction with 0.51 percent, information and communication with 0.42 percent and others with 2.64 percent.

“The manufacturing sector is the biggest economic source,” said Industry Minister Airlangga Hartarto during a media workshop on Monday.

However, its contribution has declined in the past three years, falling from 1.01 percent in 2014 and 0.94 percent in 2015, the same data show.

The contribution of the non-oil-and-gas manufacturing sector to the gross domestic product (GDP), meanwhile, remained low at around 18 percent in 2011 to 2016, compared to 30 percent prior to the 1997-1998 crisis, indicating what experts consider ‘premature deindustrialization’ in the developing country.

Airlangga added that, if combined with wholesale and retail sales as well as motorbike and car repair work, the contribution to GDP was 31.3 percent.

The biggest GDP contributor in the manufacturing sector outside of oil and gas is food and beverages with 32.84 percent, followed by metal, computer, electronics, optical and electricity equipment with 10.71 percent, transportation equipment with 10.47 percent and chemicals, pharmaceutical products and herbs with 9.86 percent. (bbn)