Tuesday, 2 July 2013

GROWTH OF NON OIL & GAS INDUSTRY SECTOR TO REACH BETWEEN 6.8% AND 7.1 PERCENT IN 2013



In 2013, growth of non oil & gas industry sec­tor is estimated to reach 6.6% - 7.1%. MS Hidayat, Industry Minister on explaining performance of non oil and gas processing industry in 2012 of (monday De­cember 12, 2012) said that the growth is supported by some industry sectors, such as fertilizer, chemical, and rubber articles industry; cement and non-metallic mineral industry; food and beverage industry and automotive industry.

In tandem with growth of non oil & as in­dustry, growth of processing industry is estimated to reach 6.2% - 6.5% in 2013, and Indonesia’s econom­ic growth is estimated to reach 6.2% - 6.7%. In that year, said Hidayat “manufacturing sector will still be facing heavy challenges”. In addition to inadequate infrastructures, investment cost is still expensive, and this sector is also facing problem of industry competi­tiveness.

Talking about year 2012, non oil & gas industry still becomes the foundation of the economy in 2012. In third quarter of 2012, this sector booked at 7.3% growth year-on year. Even though oil & gas industry experiences 5% contraction, high growth of non oil & gas processing industry causes processing industry sector to grow 6.4% year-on-year.

Out of 6.2% growth of national economy. processing industry sector contributes 1.62% to growth, followed by trading sector, hotel, and res­taurants contributing 1.22%, and transportation and communication sector contributing 1.02%. While, contribution of other sectors is less than 1%.

With the achievement of growth of non oil & gas industry at 7.3% in third quarter or 2012, which is not only higher than growth in second quarter of 2012 at 6.1%, but is also higher than growth in third quarter of 2011 at 7.2% (yoy). With the 7.3% growth, growth of non oil & gas industry is higher than national economic growth. With such a growth rate, up to third quarter of 2012, cumulative growth of non oil & gas industry reaches 6.5%.

The growth is supported by, amongst others, high consumption rate and increase of investment in industry sector very significantly so that performance of manufacturing industry sector remains stable until now.

In January - September 2012, PMA (foreign investment) value of non oil & gas industry reaches around USD 8.6 billion or increases 65.9% from the same period of 2011. And, PMDN (domestic investment) value in January - September 2012 reaches Rp 38.1 trillion or increases 40.19% from the same period of last year.
  
Growth achievement of non oil & gas indus­try at 6.5% in third quarter of 2012 is supported by growth performance of a major part of non oil & gas industry group which experiences a quite high growth. The highest growth is achieved by fertiliz­er, chemical, and rubber articles industry at 8.91%, followed by cement and non-metallic mineral indus­try at 8.75%; food, beverage and tobacco industry at 8.22%; and transportation, machinery and parts thereof at 7.52%; iron and steel basic industry at 5.70%; and textile, leather goods and footwear in­dustry at 3.64%.

In 2012, the Industry Ministry has submitted proposals of two companies concerning utilization of tax holiday facility, and currently, proposals of two applicants have been submitted to the Finance Minister. The two applicants are PT Unilever Oleochemical Indonesia (PT UOI) with total investment of USD 133 million and PT Petrokimia Butadiene Indonesia (PT PBI) with total investment of USD 150 million. (E)

Business News - December 21, 2012

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