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Indonesia targets 7 percent growth in agroindustry

Indonesia targets 7 percent growth in agroindustry

The Industry Ministry has targeted an increase of 7.1 percent in the agroindustry in 2019, higher than last year’s 6.93 percent, following a surge in domestic demand.

“In this political year, there are several sectors that will enjoy great opportunities, including the food and beverage industry,” the Industry Ministry’s acting director general of agroindustry, Achmad Sigit Dwiwahjono, said in a written statement.

The agroindustry is key to spurring growth in the non-oil and gas processing industry.

“This growth is supported by each sub-sector, such as the food and beverage industry, tobacco industry, wood processing, bamboo and rattan industries, paper and paper-based industries, and furniture industry,” Achmad said Sunday.

In the first half of 2018, the agroindustry contributed 49.11 percent of the total GDP in the non-oil and gas sector. In the same period, exports from the agroindustry contributed US$23.26 billion or 26.43 percent of total national exports.

“This means that our agro products have been able to compete globally,” he said.

Investment in the agroindustry is also the driving force of growth in the manufacturing sector. In the first half of 2018, domestic investment in the agroindustry reached Rp 24.32 trillion (US$1.70 billion), while foreign investment exceeded $1.1 billion. (brf)