The Ministry of Industry Estimates Manufacturing to Grow 5.4% in 2019

The Ministry of Industry projects next year’s manufacturing industry growth of 5.4%.

In the 2018 Final Press Conference, Minister of Industry Airlangga Hartarto said with a national economic growth target of 5.3% in 2019, the non-oil and gas processing industry is estimated to grow 5.4%.

“Industrial sub-sectors which are projected to grow high include food and beverages, machinery, textiles and apparel, leather, leather goods, and footwear, as well as metal goods, computers and electronic goods,” he said in Jakarta on Wednesday (19/12 / 2018).

In detail, next year the food and beverage industry is projected to grow by 9.86%. Furthermore, the machinery industry is projected to grow by 7%, the textile and apparel industry by 5.61%, the leather industry, leather goods and footwear by 5.40%, and the metal goods industry, computers and electronic goods by 3, 81%.

When compared with last year’s projected growth of 5.67%, next year’s projections are more moderate. Haris Munandar, Secretary General of the Ministry of Industry, explained that it considers global factors to project manufacturing industry growth figures in 2019.

The reason is, at this time many countries are protecting to protect their respective industries, as was done by the United States. “After the US starts, other countries also participate, this makes it difficult to move,” he said.

Nevertheless, Haris views domestic demand in 2019 as still good. According to him, what is happening now is a change in the transaction model, but demand for manufactured products still exists.

“The mall is closed, it does not mean that public spending is reduced, only the transaction model is different. Currently the community uses online media, this will encourage industrial growth, “he said.

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