Manufacturing key to escape 5 percent growth trap
April 12, 2019 / The Jakarta Post
GDP growth that has been hovering around 5 percent in recent years has become a tool for presidential candidate Prabowo Subianto to attack incumbent Jokowi Jokowi Widodo, who promised 7 percent growth in his campaign five years ago. However, analysts see that it is not easy to achieve 6 to 7 percent growth, particularly if the country struggles to escape sluggish growth in manufacturing.
Institute for the Development of Economics and Finance Indef economist Andry Satrio Nugroho said Indonesia was not alone in the slowdown in manufacturing. He said 20 countries in which manufacturing contributed the most to economic growth had also experienced similar slowdowns.
He, however, said Indonesia had experienced a more serious slowdown compared to its peers in Southeast Asia. He said in the last 10 years the contribution of manufacturing to GDP growth had decreased 7 percent.