Ministry of Industry Aim to Spur the Growth of 5 Manufacturing Subsector In 2018

08 January 2018 | Author : Manufakturindo
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The Ministry of Industry will try to spur the growth of five manufacturing sub-sectors in 2018, those five subsectors are steel and automotive, electronics, chemical, pharmaceutical, and food and beverage industries. These five subsectors are expected to achieve the target of growth of non-oil and gas processing industry in this year, which has been set at 5.67 percent.


Minister of Industry, Airlangga Hartarto, believes that the manufacturing sector is still the largest contributor to the national economy, which are through increasing the added value of domestic raw materials, the absorption of local labor, and foreign exchange earnings from exports.


The increasing in this value for example is done by agro-based industries and mineral mining which has produced various downstream products such as palm and stainless-steel derivatives. For the total range of downstream palm oil products, it increased to 154 products during 2015-2017 compared to 2014 of about 126 products.


During the period of 2015-2017, the manufacturing subsector has been producing an integrated smelter industry with its derivative products of stainless steel which has a capacity of two million tons per year. This amount is increased compared to 2014 which only reached 65 thousand tons of semi-finished products in the form of ferronickel and nickel matte.


Regarding the absorption of manpower, the Ministry of Industry predicts total employment absorbed in the manufacturing sector in 2017 is 17.01 million people, compared to 2016 that only reached 15.54 million people. This achievement leads to significant reductions in Indonesia's unemployment and poverty rates.


Central Bureau of Statistics (BPS) noted that non-oil and gas exports from January-November 2017 rose 14.25 percent compared to the same period in 2016. Meanwhile, in the first half of 2017, non-oil and gas processing industry exports reached USD59.78 billion an increase of 10.05 percent over the same period in 2016 of USD 54.32 billion.


The export of non-oil and gas processing industries contributed 74.76 percent of the total national exports in the first half of 2017 which reached USD 79.96 billion. Non-oil and gas export destinations, are China, the United States, Japan and the European Union.


Furthermore, non-oil and gas processing industry still gives the largest contribution to the national Gross Domestic Product (GDP) in quarter III / 2017 with 17.76 percent. Meanwhile, the growth of non-oil / gas processing industry in quarter III / 2017 amounted to 5.49 percent or above economic growth of 5.06 percent.


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