RI'S MEDIUM-, LARGE-SCALE INDUSTRIES CONTRACT 3.4 PCT

Jakarta, Feb 2 (ANTARA) - Indonesia's medium- and large-scale manufacturing industries in the fourth quarter of 2008 contracted 3.4 percent compared to the third quarter because of the global financial crisis, the Central Bureau of Statistics (BPS) said.
"The (unfavorable) situation in the fourth quarter of 2008 as a result of the global financial crisis had a great impact on the performance of medium- and large-scale manufacturing industries," BPS Deputy Chief for Balance Sheet and Analysis Slamet Sutomo said here on Monday.
In 2008, pressure on the growth of medium- and large-scale industries was getting stronger and stronger due to the impact of the global financial crisis which began in the third quarter, he said.
"The two factors caused industrial growth either to decline or slow down," he said.
Slamet said among the industries which saw the largest contraction in the fourth quarter were transport means industries (except car industry) which contracted 14.89 percent, large-scale metal industries (13.04 percent) and textile industries (10.61 percent).
"In the past, the motorcycle industry boomed because of the government's decision to raise fuel oil prices. This prompted many people to switch to motorcycles due to low-interest motorcycle credits. But in the fourth quarter of 2008 the motorcycle industry contracted because of the economic slowdown," he said.
He said the base metal industries recorded a sluggish growth of minus 13.04 percent due to low demand for machinery and processed metal in the export market.
"The textile industry was affected by an onslaught of Chinese products. In the current global financial crisis low demand in the US market has prompted Chinese manufacturers to divert their exports to Indonesia," he said.
The BPS noted that the tobacco processing industry grew 8.36 percent in the fourth quarter of 2008, the furniture industry 3.38 percent and the food and beverage industry 3.99 percent.
"The food and beverage industry always showed positive growth, the more so because the fourth quarter of 2008 saw holidays such as Christmas and New Year's Eve festivities," he said.