Monday 16 January 2012

The Indonesia Chamber of Commerce (KADIN) : GOVERNMENT NEED TO WORK HARD TO MEET GROWTH TARGET OF INDUSTRY


            Business people rated that target of industrial growth 2012 set by the Ministry of Industry amounting to 7% was relatively too high. Businesspeople as members of the Indonesian Chamber of Commerce (KADIN) believed that target of growth in industry by next year were supposedly lower than, or at least equal to, economic growth. The target of industrial growth of 7.1% in 2012 was rated as being too optimistic and not relevant to the condition of the manufacturing industry. The manufacturing industry was the sustainer of non oil-gas industry growth. Moreover, the export market for industrial products in Europe and America were in turbulence which had their effect on the domestic manufacturing industry.

            Chairman of the Indonesian KADIN Suryo Bambang Sulisto in Jakarta (Monday 9/1/2012) stated that if the Government did not take anticipative measures to face global crisis, the effect would be hard on Indonesia’s economic growth, which means that economic growth of 2012 would tend to be even lower, i.e. around 6.2% - 6.4% The external crisis factor was deep rooted and long term, longer than the general expectation. In other words, Indonesia’s economy would definitely be affected by the crisis factor so it was necessary for Indonesia to anticipate the impacts of crisis. “Under such circumstances the Government must work hard so growth target could be attained” Suryo was quoted as saying.

          Therefore Suryo recommended three points to the Government. Firstly to anticipate the turbulence of global economy. Secondly to anticipate growth resource and acceleration of economic growth to promote economic growth to a higher level.

         Thirdly acceleration and expansion of economic development of high quality which could only be done by way of propelling investments and trading, export of sectors contributive to GDP, speed of economic growth and high employment in the secretors of trading, hotels and industry.

         Furthermore fourthly procurement of job opportunities. Fifthly to enhance private investments. Increased investment would not only propel economic growth, but also create job opportunities. Sixthly to solve imbalance in economic structure and acceleration of economic growth in labor intensive and technology subsectors. Lastly, to adopt a policy for acceleration of poverty eradication plan.

         Suryo reminded the Government to immediately overcome problems which had been overshadowing the business climate. According to Suryo, it was not impossible for the Government to attain growth of that magnitude, provided that the Government was able to adopt the strategy which supported the business world in building a conducive climate. “If Government policy was right it would be easy to attain the right growth target” Suryo remarked.

         Suryo stated that the sectors of food, services and hostelling, miring and energy were the industries with growth potential and contributed more to economic growth. For that matter, if the Government were more focused on such industries with the right policy, he was optimistic that the target would be met. He also stated that if Indonesia’s domestic market were big enough and the nation would no be dependent on export market, then the opportunities to develop industries of certain sectors should be wide.     

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