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Jakarta Post

Forestry sector experiences negative growth amid fires

  • Ayomi Amindoni

    The Jakarta Post

Jakarta   /   Thu, November 5, 2015   /  08:58 pm

Amid the persistent land and forest fires, the forestry and logging sectors experienced contraction in the third quarter.

The Central Statistics Agency (BPS) recorded negative growth of -2.72 percent compared to last year's third quarter.

"Forest fires in Sumatra and Kalimantan have reduced timber production of industrial forests in Riau and Kalimantan," BPS deputy head of balance and statistics analysis Kecuk Suharyanto told a press conference on Thursday.

Although the agency had yet to conduct a specific study on the impact of the fires on the country'€™s gross domestic product (GDP), Suharyanto said that impacts could be seen in the agriculture sector's slowdown.

He added that the fishery subsector recorded 8.27 percent growth in the third quarter, owing to an increase in seaweed production. Overall, the agriculture sector grew 3.21 percent, lower than the same period last year, which stood at 3.63 percent. This sector alone contributed 14.57 percent to the total GDP.

Meanwhile, the trade sector suffered from a drop in vehicle sales. Imported goods reported negative growth as well at -7 percent.

In the mining and excavation sector, negative growth of -5.64 percent was recorded.

"There has been a steep drop in the coal-mining sector from -3.12 percent in the third quarter of 2014 to -19.51 in this year's third quarter," he explained.

Suharyanto also said that the construction sector slightly grew by 6.82 percent on the significant increase of government capital spending. (kes)

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