Manufacturing Sector Boosts Industrial Growth

VIVAnews – The government claimed that the industrial growth next year may reach 7.1 percent. 

According to Industry Minister, M.S. Hidayat, the base for Indonesia’s industrial growth in 2012 will be that of manufacturing sector. 

“We can estimate an increase up to seven percent next year, because our manufacturing industry, in which steel, food, beverage and automotive are, will accelerate,” he said today. 

However, he also admitted that the global economic downturn may become one of the impediments in industrial growth.  

“We and the economic experts continue to make assessment,” he said.

The European debt crisis, he said, is crucial as European and US markets have contributed much on our Gross Domestic Product (GDP). The contribution from both markets hits 30 percent of Indonesia’s GDP.

“The United States contributes 13 percent while Europe contributes 12.5 percent. That is a total of around 26 percent of our total exports. So, of course the crisis affects our economy,” he said.

Meanwhile, Hidayat estimated that the worst-case scenario of industrial dip due to US and European crisis is around 6.5 to 6.6 percent.