The significant growth in the processing industry's performance in the third quarter of 2023 is the result of increasingly intensive downstreaming of agricultural and mineral products.
The following article was translated using both Microsoft Azure Open AI and Google Translation AI. The original article can be found inVisitors observe a metal plate printing machine at the 17th International Manufacturing Exhibition in Surabaya's Grand City Convention & Exhibition, East Java, on Friday .
The processing industry became the largest contributor to the third quarter gross domestic product with a percentage of 18.75. This figure is higher compared to its contribution in the same period last year, which was 17.97 percent. This performance is also higher than the second quarter of 2023 which reached 18.25 percent.Economic Growth Quarter III-2023 .
The existence of downstreaming encourages the creation of added value from raw materials, semi-finished products, to become more ready-to-use products. The government has been actively promoting downstreaming, one of which is nickel, to be processed so that it has added value. Acting Head of BPS, Amilia Adininggar Widyasanti, stated that one of the main drivers of growth in the processing industry is derived from the basic metal industry. In the third quarter of this year, the basic metal industry recorded an annual growth of 10.86 percent.
The positive performance of the manufacturing industry is in line with the Prompt Manufacturing Index for Q3-2023 released by Bank Indonesia. PMI in Q3-2023 recorded a level of 52.93 percent, which is higher than Q2-2023 at 52.39 percent. If the index is above 50 percent, it indicates that the business world is in an expansion phase, while an index below 50 percent means the opposite.