JAKARTA: The contribution of manufacturing to gross domestic product (GDP) was facing further drop in the first half of 2011 thus the condition has strengthened de-industrialization indication.Director of Indef Ahmad Erani Yustika said until the first half of this year there has been no significant change in the quality of economic growth in Indonesia."The biggest growth was donated non-tradable sector, tradable sector such as manufacturing and agriculture which fell slowly," he told in a seminar with the topic on deindustrialization of CAFTA, yesterday.BPS data which are processed by Indef claimed that the processing or manufacturing industry contribution to GDP fell from 24.8% in the first quarter to 24.1% in the first half of 2011.Indonesia's economy is still dominated by household consumption which accounted for 55.7% of GDP.Vice Chairman of Indonesia Chamber of Commerce Bambang Sujagad said the condition is dangerous for the stability of economic growth."If there is inflation, then consumption will drastically fall, while consumption is still very dominant than the industrial sector," he said.An economist of Indef Didik Rachbini said industrial growth should be two folds higher than economic growth."If the economic growth is 7%, the industry must be 12%. Now, the industry only grows 2% while the economy is 7%," he said. (11) (t03/mw)

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