Textile Chemical Industry Can Grow 5.4% by Year End

The government believes the chemical, textile, and miscellaneous industry (IKTA) sector can grow by 5.4% by the end of 2017, based on the increase of activities in that sector in Indonesia.

"We grew 5.4 percent in the first quarter, and may continue to grow in the range of that figure by year end," said Achmad Sigit Dwiwahjono, Director General of IKTA at the Ministry of Industry in Jakarta on Thursday (6/8).

The chemical industry has contributed the most growth compared to other IKTA sectors, given the large number of investments and expansions.

"There is investment and expansion, and projects in that sector are ongoing. The sector is attracting investments due to the national health insurance program,” he said.

The Ministry of Industry showed that investment value in the IKTA sector reached IDR22.17 trillion in the first quarter of 2017.

Meanwhile, the target for total investment value in 2017 is IDR152 trillion.

Actual investments in the IKTA sector touched IDR122.5 trillion in 2016, with a contribution of about 37.24 percent on the growth of the national non-oil and gas processing industry.

The growth of IKTA sector is also supported by the significant increase in the number of companies in that sector, from 473 companies in 2015 to 677 companies by 2016.

Meanwhile, the Ministry of Industry targets the number of companies in IKTA sector to reach 753 companies this year.