"Of course, it had to do with the economic slowdown. But we believe we will be able to encourage it in the future," Industry Minister Airlangga Hartarto said on Thursday.
The minister said he is optimistic that the industry will grow at a faster pace in the future as several key industries such as food, beverage, automotive and textile industries are still growing well.
For its part, the ministry is trying to identify various obstacles which may disrupt the industrial growth, he added.
"We are still trying to find where are the obstacles. We are also encouraging (the development of) new industrial estates. Hopefully, they will be able to increase the capacity of the domestic industry," he said.
Secretary General of the Industry Ministry Syarif Hidayat alleged that the global economic slowdown was responsible for a decline in the countrys export of industrial products.
"As we all see the economic growth of Malaysia and Thailand is lower than ours. So it is undeniable that the global economy has highly affected it," he said.
Under these circumstances, the countrys industrial growth may reach at least 5 percent by the end of 2016, falling short of the government-set target of 5.7 percent, he said.