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Manufacturing sector's contribution to GDP above world average: Minister
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Industry Minister Airlangga Hartarto (Antara/Wahyu Putro)
I
ndustry Minister Airlangga Hartarto has claimed that the contribution of the manufacturing sector to the country’s gross domestic product (GDP), which is 20.5 percent, is higher than the global average GDP contribution from the sector.
He mentioned five countries whose manufacturing sectors contribute more than 20 percent to GDP, namely China (28.8 percent), South Korea (27 percent), Japan (21 percent), Germany (20.6 percent) and Indonesia.
The contribution of the manufacturing sector to the economy of countries such as Mexico, India, Italy, Spain, the United States, Russia, Brazil, France, Canada and the United Kingdom was estimated to be less than 17 percent this year.
He said Indonesia currently could not compare the manufacturing sector contribution to the economy in 2001, when it was close to 30 percent. “There is a new reality. We cannot compare the current context to the old economic paradigm,” he argued as quoted by Antara news agency.
While in 2001, the contribution of the manufacturing sector was close to 30 percent, it could not be maintained because of the financial crisis that had a long-term impact on the economy, he said, adding that Indonesia started to revitalize the manufacturing sector in 2014.
“Currently, global economic growth never reaches double digits. China’s economic growth is also in single digits,” he said, adding that Indonesia, whose economy was two-thirds of the ASEAN economy, had managed to grow its GDP between 5.1 and 5.2 percent.
“Indonesia benefited from the trade war between China and the United States, particularly because both countries had found other countries for their investment,” he added. (bbn)
