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Jakarta Post

Agro-processing industry grows by 6.39 percent

  • Stefani Ribka

    The Jakarta Post

Surabaya   /   Tue, April 18, 2017   /   01:07 pm
Agro-processing industry grows by 6.39 percent Foreign tourists relax and enjoy coffee during a visit to the Bali Pulina agrotourism center in Tegalalang, Bali. (JP/Agung Parameswara)

The agro-processing industry grew at a rate of 6.39 percent in 2016, beating overall non-oil-and-gas processing industry growth of 4.42 percent and domestic economic growth at 5.02 percent last year, the Industry Ministry data show. The industry grew by 5.82 percent in 2015.

The biggest contributors to growth in 2016 were the food and beverage industry, which increased by 8.46 percent, followed by pulp and paper with 2.16 percent, wood products and handicraft at 1.8 percent, tobacco processing at 1.64 percent and the furniture industry at 0.47 percent.

“Indonesia is the world’s largest producer for many agro commodities that we process into finished products,” said Panggah Susanto, the ministry’s agroindustry director general, in a media workshop on Monday.

(Read also: NGOs’ changing roles in sustainable agro industry)

Indonesia is the world’s largest producer for palm oil, dried seaweed, coconut and rattan, the second-largest producer for rubber and the third-largest producer of cocoa, according to the ministry.

The country is developing new industrial estates specialized in processing particular commodities, such as palm oil in Sei Mangkei in North Sumatra and rattan in Palu in Central Sulawesi. (bbn)