Ayomi Amindoni – Manufacturing was under pressure in the first quarter of 2016, with a 1.41 percent quarter-on-quarter (qoq) decline, according to the latest reading of the Central Statistics Agency (BPS).
BPS head Suryamin said industries that experienced production decline during the period were tobacco processing, rubber products and plastics, as well as pulp and paper.
"Tobacco processing fell 9.99 percent, rubber products and plastics down 7.66 percent, and paper products were down 5.73 percent," he said in a press conference in Jakarta on Monday.
On the opposite end, wood, bamboo, rattan and products scored the largest increase of 5.6 percent. Basic metal products and transportation equipment industry followed with 3.76 percent and 3.51 percent growth, respectively.
However, on a year-on year (yoy) basis, manufacturing registered 4.08 percent growth, BPS data showed. The increase was mainly due to the upsurge production in pharmaceutical products, chemical drugs and traditional medicine by 10.50 percent. The non-metal mineral products also grew by 8.58 percent, followed by basic metal products by 7.61 percent.
Meanwhile, industries having experienced a production decline were the chemicals and chemical goods, down 10.85 percent, electrical equipment (down 9.97 percent), and apparel industry (down 9.97 percent).
Commenting on the data, Industry Minister Saleh Husen said conditions would improve in the next quarter, especially in the chemical industry. Petrochemical companies such as of Petrokimia Gresik and Pupuk Sriwijaya are scheduled to start operating new plants soon.
"We hope it [the production] will increase in the second quarter of the year. Pupuk Sriwijaya has finished its plant expansion, and will inaugurate it soon, so it can boost production in the second quarter," he said at the State Palace. (ags)