Jakarta Post

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post
The Jakarta Post
Video Weather icon 30°C
DKI Jakarta, Indonesia
30°C Partly Cloudy

Dry and mostly cloudy throughout the day.

  • Wed

    26℃ - 32℃

  • Thu

    25℃ - 32℃

  • Fri

    25℃ - 31℃

  • Sat

    26℃ - 30℃

Manufacturing sector remains biggest growth contributor

  • Stefani Ribka
    Stefani Ribka

    The Jakarta Post

Surabaya | Mon, April 17, 2017 | 02:16 pm
Manufacturing sector remains biggest growth contributor Industry Minister Airlangga Hartarto (Antara/Wahyu Putro)

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.

(Read also: World Bank revises Indonesia's economic growth estimates down to 5.2 percent)

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)

Join the discussions