General Chairman of
Indonesian Electronic Producers Association (Gabel), Alam Surjaputra, when
contacted by Business News, stated that Gabel proposed electronic products not
to use high technology, like iron, fans, and other and they should be
manufactured by local industry. For industries whose products are not produced
by using high technology, but manually, should be listed on Negative Investment
List (DNI). Therefore, Indonesia will be oriented toward an era of increase of
national industrialization.
If the government not make rule from now, it is concerned
that in the globalization era where large industries are also producing
low-technology products, there will be no more opportunity for the domestic
industry to improve. Indonesia will become a market of electronic products
produced by foreign companies.
To promote growth of domestic industry in the framework
of establishment of new industry or expansion, the government is demanded to
give incentive in the from of tax allowance. While, to prevent domestic
industry from relocating abroad, the government should create a conducive
investment climate, law enforcement, and maintain security and political and
economic stability.
Why do Chinese electronic industries continue to exist?
All Chinese electronic industries, whether large, medium, or small industries,
whether they have existed for a long time or the newly established ones, are
required to provide an after-sales service comprehensively. During the Japanese
electronic product era, all electronic products circulating were using foreign
brands. In this new era, the government and the society must be aware that
Chinese companies investing in Indonesia are large-scale companies. Competition
will be tighter, not only in terms of after-sales service and financing, but
also in various aspects, because in the globalization era there will be no
boundary among countries, and import duty tariff will become 0%, so the
challenge will be heavier.
In 1970, Japan started to sell electronic products by using
Japanese brands, while local brands are almost non-existent. In the 1990s,
there was competition among brands of other countries entering the local
market. Since early 1990s, many electronic industries were already full
manufacturing. In 1998 when there was a social unrest, electronic industries
suffered from the consequences, and industries that have reached full
manufacturing faced difficulty in maintaining their businesses.
After that, Chinese electronic products started to enter
the Indonesian market. But, consumers must be smart in selecting which ones
were considered goods that were using well-known brands. The government must
also do brand/label arrangement, followed by standardization so that to achieve
good quality.
Regarding employment relationship, it looks that the
outsourcing system is still needed, especially to meet business demand in line
with dynamic social-economic development. But, the implementation must be able
to guarantee protection and fulfillment of worker’s social security
(jamsostek). In this case, an outsourced works is ensured that he receives the
rights and work protection insurance at least the same with other workers, and
it set forth in the prevailing legislation.
And, in determining Minimum Wage (UM), it is enough to
consider the Need for Decent Living (KHL) and economic growth components.
While, worker’s productivity variable is important in doing periodic wage
adjustment. In an attempt to minimize gap in UM value between regency or
municipality where usually there is confusion in the calculation process at
regental or municipal or provincial level, so it is proposed that UM should
only be determined at the provincial level by considering objective KHL survey
by competent institution, such as the National Bureau of Statistics (BPS), at
the regental or municipal level.
Business News - August 24, 2012
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