Decline in the purchasing power of people and unchecked smuggling activities have forced the Government to revisit its industrial growth targets, informed Industrial Minister, Fahmi Idris.
He said that he was not in a position to give out the figure as the magnitude of the problem faced by the industrial sector was being analyzed.
Industry grew at an average of 2.83 percent in the first quarter this year compared to 7.53 percent last year which has forced the Government to revise its target of 7.7 percent it had set for 2006.
The lethargic growth has been seen mainly due to the weak performances of sectors like textile, machinery, paper products.
The illegal imports of products like steel, textile, shoes, ceramics and toys have seen these industries incurring losses. Government is trying to support loss making enterprises by providing subsidies for the payment of their loans.
Meanwhile, Boediono, the Coordinating Minister for Economy has claimed that he has still not received any report about the sluggish growth of industries and expressed hope of achieving growth target of 7.7 percent.
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