Industry Minister Airlangga Hartarto said the manufacturing industry grew 4.41 percent year-on-year (yoy) in the second quarter of 2018, higher than 3.93 percent growth in the corresponding period, last year.

He said the manufacturing sector contributed 19.33 percent to the country’s gross domestic product (GDP), the largest contributor to the economic expansion.

“The manufacturing sector is the backbone to the country’s economy. Its contribution is between 18 to 19 percent. So, the economic growth depends on the manufacturing sector,” Airlangga said in a press release received by The Jakarta Post on Wednesday.

Manufacturing industry. Photo: ABB

He explained with its contribution of 11.85 percent, the rubber industry and its related products were the largest contributor to the non-oil and gas sector, followed by the leather and footwear industry (11.38 percent), food and beverage (8.67 percent) as well as textile and garments (6.39 percent).

He said the Idul Fitri holiday and the regional elections had boosted domestic consumption to a number of products like food and beverage, textile and textile products, footwear and printing.

He believed domestic consumption would continue to grow next year thanks to the implementation of both presidential and legislative elections.

According to the Central Statistics Agency (BPS), large- and medium-scale industries grew 4.36 percent yoy in the second quarter, while the small and micro manufacturing sector grew 4.93 percent yoy.

Meanwhile, the purchasing managers index (PMI) of the Indonesian manufacturing sector in July increased to 50.5 from 50.3 in June, indicating faster manufacturing sector expansion.

(Source: The Jakarta Post)