INDUSTRIAL GROWTH EXPECTED TO DECLINE

Jakarta, March 12 (ANTARA) - Secretary general of the Ministry of Industry Agus Tjahajana said Indonesia's industrial sector was expected to grow only between 2.5 and 3 percent this year.

"We have projected industrial growth at 2.5 to 3.5 percent only, down from about 5 - 7.5 percent in previous years. This is due to the impact of the global financial crisis," Tjahajana said here on Wednesday.
He said the sub-sector to be affected most was the export-based one. He said about 70 percent of textiles was usually exported while the remaining 30 percent was for domestic demand.
About 50-60 percent of shoes was exported and the rest sold in the domestic market.
Tjahajana said that not all of export-based products would collapse because of the big potentials of market at home that could serve as an alternative market.
"Some friends said about 10 percent of their production was affected while others say 20 percent. Those who diversify their products soon, can survive but those who do not will face difficulties," he said.
He expressed his hope that industry at home would be effective and efficient so that their products would be competitive.
After all, the secretary general said, there were many ports which served as entry points for illegal goods into Indonesia.
These illegal goods sell cheaper than domestically produced commodities that made them less competitive.
"Our weakness is that we have thousands of ports which are prone to smuggled goods," he added.