Indonesia's Economic Growth Increases, Edy Priyono Reveals A Soaring Sector

JAKARTA - Indonesia's economic growth in Quarter II-2022 is very encouraging, namely 5.44 percent year on year. This growth comes in the midst of a global slowdown. Main Expert Staff of the Presidential Staff Office, Edy Priyono, said that Indonesia's rapid economic growth was mainly driven by the performance of the manufacturing industry which showed an increasing trend.

According to him, if viewed by sector, the processing industry is the largest component, which is 17.84 percent of the Gross Domestic Product (GDP). "Therefore, the growth of the industrial sector has a very big impact on overall economic growth," said Edy, in Jakarta, Monday, August 15.

He revealed that of the economic growth rate of 5.44 percent, the manufacturing sector contributed the largest, which was 0.82 percentage points. Where in the second quarter of 2022, GDP at constant prices (ADHK) in the processing industry was IDR 587.5 trillion, or grew 4.01 percent year on year.

"This figure also indicates that the processing industry has recovered from the impact of the COVID-19 pandemic," he said

Edy assessed that the growth of the manufacturing industry was not as big as in the transportation and warehousing sector, which grew very high, at 21.27 percent. However, he continued, the growth of the manufacturing industry remains significant for the growth of the Indonesian economy, given the very large proportion of the industrial sector in GDP.

Big Role

Edy detailed that there are two types of industries that play a major role in boosting the growth of the processing industry. Namely, textiles and apparel, as well as food and beverages.

In the second quarter of 2022, the textile and apparel industry grew very large, at 13.74 year on year. Meanwhile, food and beverage grew 3.68 percent. This growth, said Edy, cannot be separated from the momentum of fasting and Eid.

"Despite experiencing growth, the food and beverage industry has been hit hard by the ban on exports of CPO and its derivative products that was imposed by the government," concluded Edy Priyono regarding Indonesia's encouraging economic growth.