JAKARTA - The rate of industrial growth in the second quarter of 2017 is moving below economic growth. The growth performance of the non-oil / gas processing industry amounted to 3.96% yoy compared to the second quarter of last year. The growth rate was slower than the previous quarter of 4.76% yoy.

Minister of Industry of Airlangga Hartarto said that the performance of manufacturing growth will improve in the next quarter. Because the realization of many investments channeled in the first half of this year will have a direct impact on industrial productivity.

"Investment is not an indirect impact, it took until really well start production. The industry's growth performance is also dependent on demand, including demand from export markets, "he said after coordinating a coordination meeting at the Coordinating Ministry for the Ministry of Home Affairs, Tuesday (8/8).

Industry Growth is Recovered

Nevertheless, the growth of some non-oil and gas industrial subsectors sprinted above economic growth. Some of them are food beverage industry which grew by 7.19% yoy and pharmaceutical chemical industry grew by 7.38% yoy.

The Director General of Textile and Multifarious Chemical Industry, Achmad Sigit Dwiwahjono, said that consumer demand based products tend to be above economic growth. "The needs of primary goods will not fall in demand," he said.

According to him, demand for pharmaceutical products is also helped by the large realization of government spending for the national health insurance program. "From there it can be understood why the demand for pharmaceutical products remains high."

The manufacturing sector accounted for 20.26% of GDP in the second quarter of 2017. In the previous quarter, the manufacturing role of the national economy reached 20.48% of GDP. When referring to the second quarter of last year, its role reached 20.66% of GDP.

Deputy BPS Balance Sheet and Statistical Analysis Sri Soelistyowati said the government needs to increase the manufacturing role to GDP. For in recent years the role of manufacturing to the national economy is relatively stagnant. "Even the trend is sloping."

In the second quarter, industrial growth faced some pressure. Such as decreasing demand from the export market and the length of the national holiday. "How many days off is very influential, the production of manufacturing must be reduced when the holiday is getting longer. Demand for exports also slows down, meaning production is sure to decline, "he said.