Jakarta, 4 Nov. (AKI/Jakarta Post) - The Indonesian economy is feeling the impact of the global economic downturn with the manufacturing industry's relatively stagnant growth this year, according to the country's Central Statistics Agency (BPS).

But the government has pledged to revitalise the crisis-hit sector next year. In the first nine months of 2009, large-and medium-scale manufacturing industries grew an insignificant 0.02 percent from the same period in 2008, the BPS reported.

While manufacturing industry comprises 27 percent of Indonesia’s gross domestic product of about Rp 5,400 trillion (563.67 billion dollars), manufacturing industry has been largely overlooked and needs to be improved to help spur economic growth, the BPS said.

Analysts said that in the past five years of president Susilo Bambang Yudhoyono’s administration manufacturing industry had received less attention.

The government has backed other sectors like telecommunications rather than sectors such as manufacturing that could attract more workers.

Since last year the country’s manufacturing industry — in particular export-oriented sectors — have suffered from the negative impacts of the global economic downturn, which had significantly reduced overseas demand.

While the global economy has seen signs of recovery, global demand has yet to return to the pre-crisis levels.

The government has pledged more support in Yudhoyono’s second five-year term.

“We have stated that manufacturing industry and some strategic industries will be our priorities,” said finance minister Sri Mulyani Indrawati on Tuesday, adding priorities included sugar, cement, palm oil and other natural resources.

With real sector improvements, the economy is expected to grow by more than 7 percent per year by 2014, Yudhoyono’s last year in office.

Increased employment is expected to cut the poverty rate, which now stands at 14.1 percent, or 32.5 million people, according to the latest BPS survey in March.