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Economic Slowdown Affects Domestic Industries: Indef

7 May 2015 12:16 WIB

Pabrik Tekstil Sritex, Sukoharjo. Tempo/Andry Prasetyo.

TEMPO.CO, Jakarta – Enny Sri Hartati, an economist with the Institute for Development of Economics and Finance (Indef), said the present economic slowdown had greatly affected domestic industries.

“Almost all [industries] see declines,” Enny told Tempo on Wednesday, May 6, 2015.

Enny said among the affected industries were paper, rubber, electronics, pharmacy, base metal, and textile industries—following tumbling exports caused by poor competitive edge. She said the consumption rate and the people’s purchasing power were also slipping in light of increased selling prices.

Enny explained the people were inclined to prioritize basic necessities—such as electricity and fuel—in their daily activities, thus forced to give up on their clothing needs to afford their primary ones. “Thus demands are plunging, which results in slumping production,” she said.

Enny said higher import duties and interest rates had also stymied industrial growth. “The raw materials for imports become more expensive, but the purchasing power drops,” she said. 

DEVY ERNIS| TRI ARTINING PUTRI



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