Thursday 7 November 2013

UTILIZATION OF MISCELLANEOUS INDUSTRY STILL LOW



The Ministry of Industry continues to encourage miscellaneous industry because it has a very prospective market potential. Vice Minister of Industry, Alex S.W. Retraubun, in Jakarta (Wednesday, October 23), confirms that the Ministry of Industry will continue to promote and oversee the development of miscellaneous industry in the country. According to him, the industry, which is a downstream industry, has considerable market opportunities, both at home and abroad. Apart from being a health product, education and arts product, miscellaneous industry products are also widely used by the community.

Miscellaneous industry, according to Alex, becomes one of the mainstays in supporting the Indonesian economy. This industry is able to absorb 995,315 workers, with a total investment to date at Rp.19.37 trillion. Production value of this industry has reached Rp.55.95 trillion with an export value of USD 5.96 billion. On the other hand, the utilization of miscellaneous industry is still at 59.76%. To optimize the business development of this industry, the Ministry of Industry jointly with the business continued to make some efforts, such as by holding exhibitions of miscellaneous industries. “The utilization of miscellaneous industry is still quite low, so it needs to be improved”, Alex said.

Alex considered that the existence of trade globalization, the impact felt is a challenge to the national industry competitiveness in the global market. Trade cooperation agreements with other countries make trade competition become tight and competitive, it is a challenge that must be dealt with carefully by the national businesses, which requires the ability to improve efficiency in production and marketing, as well as gives a positive value in the form of access to markets, access to technology, investment and human resources enhancement.

According to Alex, organizing exhibition is one of a breakthrough in the effort to improve promotion and dissemination of information about the ability of miscellaneous industry the country to encourage its development nationally. Miscellaneous industry exhibition is of significant importance as it becomes a promotional event and dissemination of information on a variety of miscellaneous industry products produced in the country, and can bridge the needs of the business world to open up access to markets, access technology, investment and human resource development for national entrepreneurs.

Moreover, according to Alex, through this exhibition, the public is expected to better understand the development of miscellaneous industry products, in the midst of the situation and condition of an increasingly dynamic and competitive business environment. He reported that the number of miscellaneous industries to date reached 1,035 companies spreading in North Sumatera, West Sumatera, Riau, Jakarta, West Java, Banten, Yogyakarta, Central Java, East Java, Bali, West Nusa Tenggara, East Nusa Tenggara, Central Sulawesi, and South Sulawesi.

Alex explained that the Ministry of Industry organized an exhibition with the theme “Proudly Using Indonesian Products”, participated by 17 footwear companies, 16 leather goods companies, 4 sporting goods companies, 4 stationary companies, 2 toy companies, 1 musical instrument companies, 1 Center for Skin, Rubber, and Plastics (BBKKP) Yogyakarta, and 2 other manufacturing companies. From the 47 participants, 59% of its products have been exported and 41% is sold in the country. “In the midst of fiercer competition, exhibition becomes the most effective tool in promoting products to the buyers, both within and outside the country”, he said.

Business News - October 25, 2013

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