Jakarta: Indonesia's industrial sector is expected to grow more aggressively in the second quarter of 2019 compared to the previous quarter, particularly due to increased demand during the fasting month and the upcoming Eid al-Fitr.
"We are sure that the growth will be higher than the first quarter, which reached 4.5 percent. It is expected to reach 5 percent," Secretary General of the Industry Ministry, Haris Munandar, said here on Monday.
Munandar expressed his optimism that the business climate in the country would return to normal after the General Election Commission announces the election results, along with the coming of Eid al-Fitr.
Some industries, such as food and beverages and the textile industry, have reported a sharp increase since the start of the second quarter.
"With the incoming Eid, people spend their money. The textile industry, and food and beverage, will also enjoy a sharp increase. There is also more money in circulation, as employers have to pay Eid bonuses to their employees," he said.
In the first quarter of 2019, textile and garment industry growth jumped to 18.98 percent, compared to 7.46 percent growth in the same period of 2018, and the industry's growth during 2018 was recorded at 8.73 percent.
Also, data from the Central Bureau of Statistics (BPS) showed that production of large and medium scale manufacturing industries in the first quarter of 2019 reached 4.45 percent year-on-year.
This growth was boosted by a sharp increase in production in the garment sector, reaching 29.19 percent with increased demand, especially in the export market.
Solid national economic growth was recorded at 5.07 percent (yoy) in the first quarter of 2019, pointing to maintained domestic economic performance despite retreating from 5.18 percent (yoy) in the fourth quarter of 2018.
Seasonal factors at the beginning of the year as well as the impact of weaker-than-expected global economic gains contributed to the moderate economic downturn in Indonesia.
Economic growth in the first quarter of 2019 was primarily driven by domestic demand on the back of consumption by non-profit institutions serving households (NPISH) and households.
NPISH consumption growth accelerated to 16.93 percent (yoy) in the reporting period from 10.79 percent (yoy) in the three months to December 2018, buoyed by spending on preparations for the 2019 General Election.
Household consumption also remained solid as a consequence of controlled inflation, rising incomes and higher consumer confidence, notwithstanding slight moderation from 5.08 percent (yoy) to 5.01 percent (yoy) in the first quarter of 2019. (Antara)