In anticipating the
formation of AEC 2015 particularly on the Fee trade Agreement side, the
Government felt it necessary to pay special attention on some machinery
industries like boiler, pump products, agro equipments and electrical
equipments, so in terms of import tax those products were still in the list of
sensitive category.
As disclosed by the Director of Machinery Industry and
Agro-machinery of the Ministry of Industry Teddy C. Ciantury in Jakarta on
Friday [6/12], the regulations were applied on industry which were expected to
develop higher at home, so the average applicable tax income would be around
5%-10%. The Government was promoting development of agro equipments at home
including turbine industry.
The said industry was today already in Indonesia, so all
the Government needed to was to strengthen them. And naturally the industries
were expected to be more competitive against imported products.
Therefore, one of the Government’s program was to scheme
up a masterplan for building Machine Tools Center in Banung, West Java. The
Government was expecting that the Tool Center would be a strategic project
which would determine the future course of development, particularly in tools
machines which were at present still dominated by imported products.
Other efforts of the Directorate of Machinery through
theirs policy was to set up a standard of competence to evaluate the human
resources potentials such as knowledge in engineering which would soon be
entrusted to local technicians. However it was still necessary to formulate the
plafform to be applied and it might be necessary to coordinate with the
Ministry of Manpower and Transmigration, particularly the National Board of
Certification, which would hold the authority to issue the certificate.
Through formation of the Indonesia National Manpower
Competence Standardization [SKKNI] establishment of standard of competence in
machinery industry was already set up, i.e. for the machines and welding
instruments. The policy was soon be elaborated further, whether to be managed
by the Ministry of Manpower or the Ministry of Industry.
To step up Competitive Edge
In the effort to strengthen competitive edge of national
industry, especially toward AEC to be effective in December 2015, Minister of
Industry Mohammad S. Hidayat stated in Bali on Thursday [5/12] that formation
of AEC was common agreement among Asean leaders at the 9th Asean Summit Meeting
in Bali in 2003, with the objective to set up Asean as single market and
integrated production based, whereby there would be free traffic flow of goods,
services in this region with tax exemption to be applied be inter-Asean
trading.
Realizing the importance of external trading with
countries outside Asean, some characteristics had been defined as key factors
for AEC 2015, i.e.
1. Single
market and production base
2. Highly
competitive Economic Region
3. A
region of equitable economic development and
4.
A region fully integrated into global
economy
These key characteristics were features of AEC which was
outward looking in facing competition from countries outside Asean.
Beside
the initiative to liberate the market of goods, service and investment, ASEAN
also had the initiative to integrate production in ASEAN in the form of Asean
Production Chain; better know as Priority Integration Sectors [PIS].
[PIS
was divided into 2 forms, i.e. goods sector and service sector PIS included:
1. Agro-based
products
2. Automotives
3. Electronics
4. Fisheries
5. Information
& Communication Technology [ICT]
6. Rubber-based
products
7. Textile
& apparel
8.
Wood based products
PIS of the service category included :
1. Healthcare
2. Air
Travel
3. Tourism
and
4.
Logistics Services
“Although by nature PIS was
onward looking, i.e. as ASEAN form of cooperation in facing competition from
China and other emerging among Asean members themselves” Hidayat remarked. The
inter Asean competition could mean fight for the leader position: who would
play greater role in Asean production base.
As implementation of the 12
PIR Sector concept, the Ministry of Industry played their role in setting up
integrative steps for 7 [seven] PIS sectors to be part of ASEAN Production
Chain, i.e.
1. Agro
based product
2. Automotives
3. Electronics
4. Information
& Communication Technology [ICT]
5. Rubber
based products
6. Textile
& apparels and
7. Processed
Wood Products
In
the integration of Asean Product Chain, Indonesia was expected to play an
important role not just as supplier of raw materials and end result products
but also as production base. The integration process must involve
businessplayers especially State Owned Enterprises [BUMN] amd national private
companies to build production bases in Asean where Indonesia was expected to
play their role.
Business News - December 11, 2013
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