Until quarter I 2011, precisely May, absorption of budget by the ministry of industry reached 14.9% of definitive ceiling of State Budget 2011 at Rp. 2240 trillion. The minister of industry M.S. Hidayat, during technical meeting with commission VI of house on Monday (6/6) disclosed that the budget absorption level was on the right track, considering that tender process of government projects had just begun.
In part of his presentation to house it was stated that in 2012 the ministry of industry had recommended 11 tasks under the Director General of Basic Industry Manufacturing, the Directorate General of Industrial Zones Development the Directorate General of Climate Management and Industrial Quality; the Directorate General of International Industrial Collaboration, and the Secretariat General respectively.
Through a number of recommendation which supported development acceleration and expansion of six economic corridors the total fund reached Rp 472 billions, of which the greatest allocation was for the development of cheap public transportation amounting to Rp 144 billions and extra restructurization for textile-and textile products industrial machinery worth Rp 100 billions.
In the effort to increase added value to domestic agro industry, apart from enhancing investment in certain Industries in certain facilities and asked the ministry of finance to give incentives to industries who processed their raw material at home (such as for mining products) while on the other hand to impose disincentives on commodities brought out of Indonesia, such as by way of imposition of export tax.The regulations was intended to be put in effect on the mining and petro chemical industries, to shift domestic industries more to the downstream side.
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