Is It True That There Has Been A Setback In The Indonesian Processing Sector? Check Out The Answer Of KSP Experts

Main Expert Staff of the Presidential Staff Office, Agung Krisdiyanto. ANTARA/HO-

JAKARTA - Main Expert Staff of the Presidential Staff Office (KSP), Agung Krisdiyanto, denied the assumption that there had been a decline in the industry or deindustrialization in the manufacturing sector in Indonesia. According to him, in terms of the amount of Gross Domestic Product (GDP) at constant prices, the output of the processing industry actually increased from IDR 587.49 trillion in the second quarter of 2022, to IDR 606.08 trillion in the third quarter of 2022. "This “ This value is even higher than the conditions before the pandemic," he said in a written statement received in Jakarta, Antara, Monday, November 14. In the third quarter of 2022, Indonesia recorded GDP at current prices of IDR 5,091.2 trillion. sectorally, the processing industry grew 4.83 percent compared to 2021. Although this figure is lower than the overall growth rate in the industrial sector, with a large portion in GDP, the processing industry has made a major contribution to economic growth. Meanwhile, from the national growth of 5.72 percent, he said, 0.99 percent came from the processing industry. This contribution is the largest followed by the transportation and warehousing sector at 0.90 percent, trade at 0.71 percent, and accommodation for food and beverages at 0.47 percent. Regarding the threat of slowing economic growth in developed countries as a result of the global recession, he emphasized the importance of industry players, especially those who are export-oriented to carry out market reorientation, either looking for a new market, namely non-traditional or turning to the domestic market. The government, he said, would try its best by using various policy instruments to prevent the effects of the slowdown in world economic growth to the industrial sector in Indonesia. "If it is not anticipated and handled properly, the impact could be on the utility of the employees' factories and the risk of housing, perhaps even layoffs. The hard work of all parties remains expected to face these challenges," he said.