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Industrial activities pick up in Q1: Officials

Having been falling since the last quarter of 2008, the country's industries - mainly those aimed at the domestic market - have begun to show signs of perking up, indicated by an increase in electrical power consumed in the first quarter this year, compared to a quarter earlier, a ministry official says

Aditya Suharmoko (The Jakarta Post)
JAKARTA
Fri, April 10, 2009

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Industrial activities pick up in Q1: Officials

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aving been falling since the last quarter of 2008, the country's industries - mainly those aimed at the domestic market - have begun to show signs of perking up, indicated by an increase in electrical power consumed in the first quarter this year, compared to a quarter earlier, a ministry official says.

While industry as a whole experienced contraction in the final four months of last year, there were signs of more industrial activity in the following quarter, the first quarter of 2009, said director general of electricity and energy utilization at the Energy and Mineral Resources Ministry, J. Purwono, on Thursday.

"Electrical usage of industries began to increase in the first quarter of 2009 from the fourth quarter of 2008, when industrial activities were sluggish," Purwono said.

"Maybe industries have found new markets," he added.

His statements echoed remarks on Monday by Finance Minister Sri Mulyani Indrawati who said power consumption of industries rose 2.5 percent in the first quarter of 2009 compared to the previous quarter, indicating more activity.

It signaled, she said, that industries have continued producing goods amid the global economic downturn because of higher demand in the domestic market.

The Industry Ministry has said industries may expand between 3.6 percent and 4.6 percent this year. Indonesia's economy may expand as low as 3 percent this year, according to the central bank, as exports and investments slow down.

While the country will not reach economic growth comparable to last year's 6.1 percent, the impact of the global economic slowdown will be cushioned or countered if industries can maintain output, provided that domestic demand, Indonesia's main economic driver, remains robust.

Both Purwono and Mulyani however, warned that a pick up in electricity in the first quarter was not yet significant on its own.

Compared to the electrical usage level of industries in the first quarter of 2008, this year's first quarter use of power by industry was less than that of last year, said Rudiantara, vice president director of the state power company PT PLN, the sole electricity public utility.

"Electrical usage of industries was down double-digits in the first quarter of 2009 compared to the same period a year earlier," he said, without elaborating.

Diesel consumption of industries in the first quarter of 2009 was also lower than that in the same period last year, said Anang Rizkani Noor, spokesman for state oil and gas firm PT Pertamina.

"There has not been a significant rise in diesel consumption," he said.

However, in the first quarter, Indonesia's economy is predicted to have expanded by 4.6 percent, according to the Finance Ministry.

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