REPUBLIKA.CO.ID, JAKARTA – Indonesian Center for Statistics (BPS) reported that the growth of manufacturing industries during the first quarter of this year was 4.21 percents year on year (YoY). Senior Deputy Governor of Bank Indonesia (BI) Mirza Adityaswara said it had not met the target.

He said the biggest portion of manufacturing industries in Indonesian economic was 20 percents. “It is too low for Indonesian economic where it should be the basic source of manufacturing industries. Therefore, we need a structural reformation,” said Mirza in Jakarta on Friday (May 5). 

According to Mirza, by 20 percent of the portion, it should be growth up to 6 percents as the last few years. He hoped the good will of government to simplifize the business permit in manufacturing sectors would give significant result. 

Mirza added that the construction sector showed better growth. It reached 6.2 percents, while its portion in GDP was only 10 percents. However, it was a normal growth as government was recently incessant in doing infrastructure development. 

The growth of trade sector reached 4.77 percents and it was argued to be less satisfying. It showed that the demand of domestic sector had not fully recovered. It had 13 percents of portion in Indonesian economic. 

Meanwhile, the domestic spending growth was only 4.93 percents. Governmental consumption only grew 2.7 percents. “It means that governmental spending in the first quartal was not as many as the growth in second and third quartal,” said Mirza. 

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