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Indonesia's manufacturing continues to grow in Q1: report
Last Updated(Beijing Time):2012-05-29 13:47

A report released by Indonesia's Industry ministry said that the country's manufacturing industry continued to grow in the first quarter of this year, as robust domestic consumption countered the adverse impact from slowing global demand, local media reported on Tuesday.

The nation's non-oil-and-gas manufacturing sector grew 6.13 percent year-on-year at the end of the first quarter, driven by growth in fertilizer, chemicals, rubber, and food, beverage and tobacco sectors, while growth in the first quarter was up 5.9 percent over the same period last year.

The fertilizer, chemical and rubber-goods sector expanded 8.19 percent, while the food, beverage and tobacco sector grew 9.1 percent, the ministry's said.

Other sectors that grew significantly were transportation vehicles and machinery, which expanded by 6.23 percent; and cement, which grew 6.11 percent, the reports said.

Sectors that posted slower growth in the first quarter included basic metal and iron at 5.57 percent, down from 17.56 percent in the first quarter last year; and wood and forestry products at -0.86 percent, down from 0.4 percent.

Industry Minister MS Hidayat said that growth would likely pick up in subsequent quarters as demand increased and supplies of raw materials, particularly basic metals and iron, improved.

Starting in late January, more than 2,000 containers carrying scrap metal have been detained at Tanjung Priok Port in North Jakarta for contamination by hazardous toxic waste according to customs officials.

Hidayat said he had discussed the contaminated metal with Coordinating Economic Minister Hatta Rajasa and Finance Minister Agus Martowardojo, and expected a resolution to be issued this week.

Hidayat said he was optimistic that domestic manufacturers would maintain steady growth despite protracted economic problems in the nation's traditional export markets.

"If we can reach the same growth as last year, it will good already. I want to be realistic, although I do want it to grow by around 7 percent," Hidayat said as quoted by the Jakarta Post.

The Industry Ministry previously set a target of 7.1 percent growth for domestic manufacturers, over the 6.83 percent growth recorded last year.

Source:Xinhua 
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