THE GROWTH SECTORS
Observing from the starting period of New Governance Era until today, Indonesia’s
economy is actually transformed rapidly from agricultural based economy to industrial
based economy (non-agricultural). BPS data pointed out that in the year 1970, Gross
Exchange Rate (GER) from the agricultural sector contributed around 45% to the
formation of Gross Domestic Product, during the 1990’s era it was left to merely 16% to
20%, and further to only around 14.54% in the first quarter of 2006. (Table 2). A relatively
declined shares from agricultural sector in forming the national GDP was caused by a
relatively low growth of output (Average per year or total growth) in this sector compared
to others particularly manufacturing industry, in line with the average growth of income
per capita and technology. For instance, in 2005 agricultural sector was only increased by
2.5% which was much lower that the growth of output in industrial sectors by 4.6%. Yet,
in the first quarter in 2006 , the growth of industrial sector was slower than those of
agricultural sectors.
Further, agricultural sub-sector which surged sharply is non-food sector that reached
5.26% in the first quarter 2006. It was mainly contributed by the export growth of
plantation commodities, particularly palm-oil.
In the mining sector, the sharp growth of non-oil/gas was evident that is from 7.8% in
2005 to 23.24% in the first quarter of 2006. It was mainly due to the growth of production
of nickel, copper and coal.
In the manufacturing industry, the industry category of transportation utilities and
machineries enjoyed the highest growth compare to 7 other important industrial products
(Table 2). Meanwhile, industries such as rubber, chemical and manure has also indicated
sharp growth in the last two years, although it suffered from significant lessened growth in
the first quarter of 2006. In the meantime, woods and wood product industries which is the
important export oriented industry also experienced negative growth in the past two years,
and it tends to become larger in the first quarter of 2006. It was mainly attributable to the
scarcity of woods material supplies and wood smuggling to foreign countries which
continue to increase in the past few years. Leather, clothes and footwear which was the
leading export of Indonesia’s manufacturing products was also experienced a slow down in
Table 2: The Growth of Real GDP based on Sector (%)
2004 2005 1Q 2006 Share (%)
Agriculture
Food
Non-Food
Mining & Excavating
Oil and Gas
Non-Oil and Gas
Excavating
Manufacturing Industry
- Oil and Gas
- Non-Oil and Gas
1．Food, Beverages & Tobacco
2．Textile, Leather & Footwear
3．Wood and Wood’s Products
4．Paper & Printing
5．Fertilizer, Chemical & Rubber
6. Cement & Non-Metal Mineral
7．Iron & Steel
8．Transportation Tools & Machinery
Electricity, Water & Gas
Building
Trade, Hotel & Restaurant
-Groceries & retail
-Hotel
-Restaurant
Transportation & Communication
