The latest report by the Central Statistics Agency (BPS) has dismissed fears of deindustrialization. The micro-to-large manufacturing sector is growing positively.
In the first quarters of 2017, according to BPS, the medium-to-large manufacturing sector grew by 4.33 percent compared to the same period last year. Meanwhile, the growth of the micro-to-small manufacturing sector was faster, namely 6.63 percent.
After the implosion of commodity prices, which had driven the national economy for the last five years, we increasingly realized the importance of growing the manufacturing industry and abandoning our dependence on commodities. The industrial sector is thought to provide high added value to primary commodities, give employment, bring in foreign exchange during exports, and save foreign exchange when meeting domestic demand.
The growth of large and medium industries is supported mainly by the growth of the chemicals, food, and rubber and plastics industries. Meanwhile, the growth of micro and small manufacturing industries is driven by the rise of the computers, electronics and optical goods and machinery.
The large and medium manufacturing industries, which have experienced falling growth, are the textiles, beverage industries, and industries from wood and cork, wickerwork from bamboo and rattan. Declines in the small and micro industries occurred in the pharmaceutical industry, chemical drug products and traditional medicines, repair and installation services for machinery, and the electrical equipment industry.
The growth of our large food industry is expected to have an interesting effect on the upstream and downstream sectors. Electricity, roads, and telecommunications services in villages must be good and smooth to make the processing industry more efficient.
The substantial decline in the large and medium textile industry cannot be ignored because it absorbs a large number of workers and contributes foreign exchange from exports. The high price of electricity, which has thus far been the cause of declining competitiveness, has not been solved yet, despite last year\'s issuance of an economic policy package designed to reduce the price of industrial electricity.
In the midst of this diverse picture of the manufacturing industry, there is still great optimism. There is still room to grow small and micro-scale pioneering industries. The duty of the government is to create a business climate that enables new entrepreneurs to emerge, including in future industries and the technology-laden creative industries.