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$Unique_ID{bob00242}
$Pretitle{}
$Title{Indonesia
Manufacturing Industry}
$Subtitle{}
$Author{Department of Information Republic of Indonesia}
$Affiliation{Embassy of Indonesia, Washington DC}
$Subject{industries
export
industrial
value
million
volume
small-scale
thousand
commodities
increase
see
pictures
see
figures
see
tables
}
$Date{1990}
$Log{See Manufacturing Wood Frames*0024201.scf
See Table 20.*0024201.tab
See Table 21.*0024202.tab
}
Title: Indonesia
Book: Indonesia 1990 an Official Handbook
Author: Department of Information Republic of Indonesia
Affiliation: Embassy of Indonesia, Washington DC
Date: 1990
Manufacturing Industry
[See Manufacturing Wood Frames: Courtesy Embassy of Indonesia, Washington DC.]
Manufacturing plays a more significant role in the economy. In 1988 it
accounted for 18.4% of gross domestic product at constant market prices and
its growth rate was 13.0% at 1983 constant market prices. The additional
number of workers engaged in this sector during the period 1984/85 to 1988/89
totalled 2.4 million people of which 1.2 million work in small-scale
industries. Based on the latest data collected by the 1986 National Economic
Census and other surveys, the industrial sector is estimated to grow at a rate
of 13.2% on a yearly average during the period 1984-1988, surpassing the
target of 9.5% on annual average set for the period of the REPELITA IV,
1984/85-1988/89).
Deregulation measures -- imposed since 1983 on finance and monetary,
investment, export and import as well as in the field of manufacturing
industry -- have brought beneficial effects on production activities and the
product's competitive power both in domestic and foreign markets. The added
value of manufacturing industries covering multifarious industries, basic
industries, small-scale industries and petroleum and natural gas refineries
industries in 1988 amounted to Rp 18,339.9 billion against Rp 9,896.4 billion
in 1983. Meanwhile, exports of industrial products in terms of value, volume
and amount of commodities also showed an encouraging increase. The actual
export value of the 381 economic commodities in 1988 totalled Rp 9,387.9
million against only 181 commodities valued at Rp 3,209.2 million in 1983. In
terms of value, contribution of the manufacturing industry to non-oil and-gas
exports and the overall exports rose impressively from 64.2% and 15.2% in 1983
to 81.4% and 48.8% respectively in 1988. It was also partly caused by the
application of shrewd policies on export and the diversification of exports
market. More encouraging is that some products of the small-scale industries
such as brooms, crispy chips made of gnetum gnemon seeds (emping melinjo),
brown sugar, and some products of large and modern industries such as steel,
automobile, highly pressured-tanks, reactors, etc. have been able to enter the
international market.
Development in the field of basic industries covering basic chemical,
machinery and basic metal as well as basic industries grouped to multifarious
industries such as textile synthetic fibre, has also indicated a more
favorable tendency. It is reflected by the 1984-1987 basic-industry projects
numbering 135 with a total investment of Rp 6.9 trillion, by which it can save
US$1.2 billion of foreign exchange reserve per annum.
Such rapid development in the industrial sector is indeed closely related
with investment development in this sector during the last five years.
Investment value of industrial projects excluding the small-scale industries
under domestic and foreign investment schemes as well as the non-domestic and
foreign investment scheme up to 1988 totalled Rp 12,360 billion plus US$4,240
million against the amount of only Rp 2,330 billion plus US$1,112 million in
1984. The food processing industries, textile, construction material, timber
and rattan processing industries of the multifarious industries group, and
industries of rubber cellulose, organic and inorganic chemistry, and basic
metal industry as well as machinery industry along with that of rubber gloves
and sports shoes obtained a large portion of investment.
Parallel with the rapid growth of this sector, the nation's capability of
mastering technology in the context of improving her autonomy in the
industrialization process has been continuously promoted and encouraged.
Studies and developments which have been conducted up till now are also
showing positive results. The nation's ability in technological application
including sophisticated modern technology which is important in the framework
of enhancing the quality of products, efficiency and productivity as well as
preventing industrial pollution, has been constantly improving. In addition,
promising progress has also been noted in developing effective technology for
the development of smallscale industries. Meanwhile, the mastery of design and
construction technology and industrial engineering in the making of machines,
equipment and building of factory by the Indonesian engineers has also been
improving. Indonesian engineers are now capable to construct modern plants
such as cement, paper-mill, fertilizer and steel plants with application of
the sophisticated modern technology.
MACHINERY AND BASIC METAL INDUSTRY
The development of the group of machinery and basic metal industries
during the last five years indicates a considerable improvement, both in terms
of volume and kind of production.
The export volume of the machinery and basic metal industries group, in
1988/89, totalled 1,948.5 thousand tons, meaning an increase by 94.2% compared
to that of the previous fiscal year. Compared to that of 1983/84 the increase
is about 907.64%. Meanwhile, the export volume of basic metal industries in
1988/89 noted an increase of 28.5% compared to that of the previous fiscal
year, that of machinery industries rose significantly by 1,055.4%, electric
and electric machinery industries increased by 699.7% and export of land and
air transport equipment industries rose by 310.0%.
The export value of this group also rose by 159.3% during the last five
years. In 1988/89 it amounted to US$686.88 million, an increase by 24.6%
compared to that of the previous fiscal year which derived from the basic
metal industries 36.5%, machinery industries 231.0%, electric and electric
machinery industries 281.8%, and equipment of land and air transport
industries 54.8%.
The increase in exports of machinery and basic metal industries products
occurred to export commodities such as steel-iron, steel plates, concrete
steel, wire stalks, steel pipes, boilers and offshore drilling rigs.
BASIC CHEMICAL INDUSTRY
Development of the basic chemical industry during the period of REPELITA
IV (1984/85 to 1988/89) also shows a steady rise as reflected by the number of
companies which grew from 160 in 1983 to 341 in 1988 and the kinds of
commodities which increased from 39 to 71. Included in the additional
commodities are among other things long fibre pulp, fibre pulp, newspaper
print, cement sack paper, nylon tyre-cord, methanol, basic material for
pesticide, phthalic anhydride, maleic anhydride, sorbitol, formylate acid,
calcium carbide, polystyrene aluminum fluoride, PTA and DOP.
Both the export volume and value of the basic chemical commodities
continue to show a promising increase during the last five years. The export
volume of these commodities grew by 795.0% from 598.0 thousand tons in 1983 to
5,352.7 thousand tons in 1988, while its value reached US$585.3 million in
1988 against US$75.66 million in 1983. Of this amount cellulose and rubber
industries accounted for about 30.3%, the agro-chemical industry 29.4%,
inorganic chemical industry 22.3% and organic industry 18.0%.
In 1988, the production of some agro-chemical industries declined, while
those of cellulose and rubber industries showed an increase. Production of
organic chemical industries indicated a rise, especially that of sorbitol
whic