The manufacturing industry in Indonesia is still able grow positive in the first quarter (1Q) of 2020 amid the pressure from the pandemic, said the minister on Tuesday (04/21) - Photo: Privacy

JAKARTA (TheInsiderStories)  – The manufacturing industry in Indonesia is still able grow positive in the first quarter (1Q) of 2020 amid the pressure from the pandemic, said the minister on Tuesday (04/21). The data showed, the processing sector rose 10.11 percent compared to the same period last year.

Industry minister, Agus Gumiwang Kartasasmita revealed, during the 1Q of 2020, exports from these sector exceeded US$32.99 billion, while the import value was recorded at around $31.29 billion. There was a surplus of $1.7 billion during the last quarter.

The values representing 78.96 percent of the total national exports which reached $41.78 billion, he explained. Five sectors as the biggest contributors to the values are food industry worth of $7.17 billion, basic metals industry ($5.48 billion), chemical industry and chemical goods ($2.99 billion), apparel industry ($2.02 billion), also rubber industry, rubber and plastic goods ($1.78 billion).

In March only, export from the manufacturing industry recorded worth of $11.12 billion and the value of imports was $10.80 billion, or posted a surplus of $320 million. In the same month, the processing industry also contributed 78.92 percent of the total national export value which reached $14.09 billion.

In details, food and beverage industry of $2.47 billion, basic metals industry ($1.96 billion), chemical industry and goods from chemicals ($1.04 billion), industrial goods from metals, computers, electronic goods, optics and electrical equipment ($1.02 billion), and the textile and apparel industry ($960 million).

“We see that there is a shift in export growth which was initially driven by CPO (crude palm oil) and its downstream products also textiles in 2019. In the first quarter of 2020, especially this March, both commodities being replaced by steel including precious metals, as well as paper and machinery,” said the minister.

The high export growth of steel commodities was driven by companies in the Morowali Industrial Estate with the main market destination to China and several other countries. He added, the oleochemical industry also grow higher with export value of $658 million in January – February 2020, up 31 percent compared to the same period of last year.

In addition, the palm cooking oil industry and oleo food exports grow 2.5 percent in same period of 2020. Furthermore, the automotive industry has shipped 87,879 units of four-wheeled vehicles until April 15. While, two-wheeled vehicles export reached 215,347 units.

“Until April, our automotive industry components for four-wheeled vehicles exports has penetrated 11,099,550 pieces. In fact, aircraft, railroad and heavy equipment component companies are also still actively exporting,” adds by the minister.

He is optimistic that Indonesia will be one of the countries to experience a faster recovery and record positive economic growth after the pandemic. This is based on the International Monetary Fund report, which states that Indonesia is one of three countries in the world whose economic growth is predicted to remain positive in 2020.

Written by Staff Editor, Email: theinsiderstories@gmail.com