Three Sectors Are Able To Boost Economy

The sectors of agriculture, manufacturing, and trade are expected to be the three main sectors contributing to the growth of Indonesia's economy next year.Senior Deputy Governor of BI Mirza Adityaswara stated that these three sectors are improving and are expected to contribute around 65-70% to Indonesia's economic growth next year. `So if in 2017 we mention that economic growth could be slightly above 5%, it seems quite reasonable,` he said at the Bank Indonesia Building, Thamrin, Jakarta, on Monday (September 12).`If we look at Indonesia's economy sector by sector, there are three main sectors, which are manufacturing, agriculture, and trade. Manufacturing is around 22-24%, agriculture is about 20%, and trade is about 22%. So the three sectors are already around 65 to 70% of (the economy) in Indonesia,` he added.The contribution of the agricultural sector is supported by the increase in prices of various plantation commodities, such as palm oil and rubber, as well as the increase in the harvest of rice crops. `Now the prices of plantation commodities have started increasing. Even though it is not significant, if we look at January until now, what we can say is that the price of palm oil has increased by around 20%,` Mirza explained.He mentioned that the price of rubber has also increased by 20%. Therefore, next year, the price of agricultural commodities is expected to improve and be more stable compared to this year.Meanwhile for manufacturing, Mirza said, this sector is still very much influenced by the stability of the Rupiah exchange rate against the US Dollar. As the manufacturing industry sector relies heavily on imported raw materials. `If yesterday the sector had grown by more than 4% of GDP in the first and second quarters, this was indeed largely helped by the rate being more stable. So our hope is that the stability of the rate remains in the second half of 2016 and in 2017. Well, this will help the growth of the manufacturing sector,` he added.The same thing also applies to the trade sector, which also relies on the stability of the rate, considering there is also an imported component in trade. However, along with improving trade balance in the second quarter of 2016, this means the stability of the rate can continue to be maintained. `So the hope is in 2017, trade which has started to recover in 2016, will continue to improve in 2017,` he concluded. (dtf)
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