D

espite East Java's slowing economic growth rate during the first three months of this year, the province's service industry continues to show rapid growth, an official said over the weekend.

The head of statistical analysis at Central Statistic Agency's (BPS) East Java office, Yos Rusdiansyah, said Friday that a number of service industries, such as communications, hotels, transportation and construction, were rapidly growing in line with a steady increase in consumers' needs.

"The service industry continues to grow steadily and significantly contribute to the province's economic growth," Yos said at a presentation meeting in the BPS office.

BPS recorded East Java's economic growth rate in the first three months at 4.48 percent, or a decline from 5.99 percent in the corresponding period last year.

The province's Gross Regional Domestic Income (PDRB) during the period reached Rp 166.97 trillion (US$15.17 billion).

During the January-March period all economic sectors in the province suffered significant slowdown apparently due to the impact of the global economic crisis, with the exception of the service industry.

Transportation and communication services enjoyed a robust growth rate of up to 12.16 percent, while finance and rental services increased by 7.64 percent.

The agriculture sector, however, suffered from the slowdown caused by natural disasters that hit the province earlier this year, such as floods and landslides.

Yos said sectors that significantly contributed to the province's economic growth were trading, hotel and restaurant services, at a rate of 1.64 percent, while the communication and transportation sector increased by 0.71 percent and the manufacturing industry by 0.63 percent (compared to those in the same period last year).

Amid the economic slowdown, the statistics agency recorded a 0.33 percent increase in household consumption, while exports from the province grew by 6.53 percent.

BPS also recorded there were four favorable export products from the province, namely fishes, paper, organic chemical substance and furniture. Those sectors contributed greatly to the province's income generation.

Separately, chairman of the provincial chapter of the Indonesian Furniture and Handicraft Producers Association (Asmindo) Oetarjo Hariohoehojo said furniture and handicraft producers targeted the exports to increase by about 10 to 15 percent from last year's exports of $2 billion.

He was optimistic the target would be achieved due to a flurry of closures in the furniture industry in China and Vietnam.

"Producers in the country can lobby former buyers of Chinese and Vietnamese products to buy Indonesian products instead," said Oetarjo.

He added that furniture and handicraft producers enjoyed improved business since February this year as they started to gain additional buyers from America and Europe.

Asmindo's data showed 35 percent of the country's furniture products were exported to Europe, 29 percent to the United States, 9 percent to Japan and 37 percent to Africa and the Middle East.