The Central Statistics Agency (BPS) recorded negative production growth in small and micro manufacturing industries in the third quarter, which saw a fall of 1.31 percent compared to the previous quarter.

BPS head Suryamin said among industries that had experienced the largest decline included the machinery and equipment repair and installation industry, which dropped by 7.69 percent, the paper and paper product industry (7.58 percent) and the basic metal industry (7.47 percent).

"Meanwhile, the industries that saw production increases were the tobacco processing industry, which rose 32.86 percent, followed by the industrial chemicals and other chemical goods [8.76 percent] and the pharmaceutical industry and traditional medicine [2.81 percent]," Suryamin said at a press conference in Jakarta on Monday.

Compared to the same period of last year, however, the small and micro manufacturing industry recorded positive growth, growing 6.87 percent, Suryamin said. This industry's growth was higher than the large and medium manufacturing industries' production growth, which stood at 4.55 percent.

"This means that government efforts to encourage small and micro manufacturing industries by providing incentives have already provided visible results," the BPS head said.

This increase, he said, was mainly owing to the increased growth in tobacco industry production, which now stood at 19.17 percent, followed by the machinery and equipment industry (19.12 percent) and the chemicals and chemical goods industry (18.63 percent). Meanwhile, the industries that experienced growth declines were wood, wood products and wicker industries, which stood at 5.88 percent, followed by basic metals industries (5.87 percent) and non-machine metal goods and equipment industries (2.68 percent).

Suryamin further said growth of the large and medium manufacturing industry in the third quarter stood at 4.22 percent year-on-year (yoy), slower than production growth in the third quarter of 2014, which stood at 4.53 percent. The production growth was supported by increased growth in the production of pharmaceuticals, chemicals and traditional medicinal products industries, which stood at 15.31 percent, followed by other processing industries (13.53 percent) and machinery and equipment industries (8,28 per cent).

Suryamin added that the large and medium manufacturing industry grew 1.04 percent quarter-to-quarter (qtq), a decline from last year'€™s third quarter, in which the industry grew 2.04 percent, but it was still better than the industry's production growth in the third quarter of 2013, which stood at 0.51 percent.

He said the industry's growth was supported by increased production in machinery and equipment industries (6.96 percent), other transportation equipment industries (5.81 percent) and other manufacturing industries (4.87 percent).

"The leather industry, leather goods and footwear times were down 2.91 percent, followed by rubber, rubber products and plastics industries, which fell 2.80 percent, and beverage industries, which dropped 2.78 percent. (ebf)

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