SMALL AND MEDIUM INDUSTRIES SHOULD NOT BE CONSIDERED AS BIG COMPETITORS

Industry Minister, M.S. Hidayat, asked the Indonesian Chamber of Commerce and Industry (KA­DIN) to continually promote development of partner­ship programs between big businesses and small and medium industry (SMI) entrepreneurs. IKM should not be considered as big competitors, but they should become business partners that could strengthen big industries, Weak economic development of Indonesia so far is due to unavailability of upstream to down­stream network between small and big industries. In advanced industrial countries like Japan and South Korea, development of big industries is very strong as it is supported by the existence of small industries. This matter was stated during the opening of Jakarta SMI Expo 2012 at the Industry Ministry.

To micro, small, and medium businesses (UMKM), the existence of KADIN gives a hope. KA­DIN is expected to be able to play a more significant role in co-promoting empowerment of UMKM, es­pecially SMI sector. Since the application of China-ASEAN Free Trade Agreement, many SMI are in bad condition because their products are less competitive than products imported from China.

The management of KADIN must be able to change its reputation as an organization working in favor of all business operators. In this case, there are several attempts that could be taken, among other things, KADIN is expected to become facilitator in fighting for things which have so far been a problem to SMI, such as capital access, high bank loan inter­est rate, technology, marketing, and other.

SMI empowerment and development has be­come one of the priority activities carried out by the Industry Ministry. Empowerment has been conducted through a variety of programs in the framework of solving of problems faced, namely human resources, capital, and technology. These activities are in the form of, among other things, training, technical and non-technical guidance, and promotion.

SMI is one of the foundations of people’s economy, therefore development must continually be carried out in coordination with governmental and non-governmental institutions and organizations. It is expected that development can be conducted prop­erly so it will create a positive impact on SMI develop­ment, which will finally accelerate growth of people’s economy.

Looking at SMI development and growth re­cently, it is not free from commitment and policy as well as programs carried out by the government con­tinually. This is done with enthusiasm so that SMI in Indonesia could be continually growing rapidly and have a high competitiveness to be able to compete in the global economy arena. SMI products are excel­lent, and they are not less competitive than similar products of other countries.

Based on data of 2011, total number of SMI business units reaches 3.9 million units absorbing 9.14 million workers. Currently, SMI only contributes around 10% to GDP. It is expected that in the future, SMI contribution to the GDP will increase to 50% by 2025. 

Business News - December 7, 2012

OCTOBER 2012 FOREIGN TOURIST VISIT TO INDONESIA INCREASE 4.93 PERCENT

The National Bureau of Statistics (BPS) an­nounced that number of foreign tourist visits to Indonesia in October 2012 reaches 688.3 thousand peo­ple or increases 4.93% if compared to October 2011 at 656.0 thousand people. If compared to September 2012, the number Slightly increases by 0.70%.

Number of foreign tourists arriving through 19 main gates in October 2012 also increases 4.95% if compared to October 2011, or from 618,706 to 649,327. If compared to September 2012, num­ber of foreign tourists arriving through 19 gates increases 1.08%. While, number of foreign tourists arriving through Ngurah Rai airport, Bali in October 2012 increases 3.39% if compared to number of arrivals in the same month of 2011, or from 244,421 to 252,716 visitors. Compared to September 2012, number of tourists arriving through Ngurah Rai airport decreases 1.17%.

Cumulatively, in January? October 2012, number of foreign tourists visiting Indonesia reaches 6,583,629 people or increases 5.00% from the same period of 2011. Increase in the number of foreign tourists occurs in a major part of main gates, with the highest increase recorded at Husain Sastranegara airport, Bandung at 23.91%, followed by Adisucipto airport, Yogyakarta at 15.17%, and Sepinggan air­port, Balikpapan at 8.93%. While, 4 gates experiencing decline in the number of foreign tourist visits are Lombok International Airport. Mataram, by 14,17%, Sam Ratulangi airport 5.32%, Sultan Syarif Kasim II airport, Pekanbaru by 4.11%, and Makassar gate by 1.17%.

Increase in number of foreign tourist visits in October 2012 if compared to October 2001 occurs in a major part of main gates. The highest increase occurs in Adi Sucipto airport, Yogyakarta by 81.59%, fol­lowed by Selaparang/BIL, Mataram by 38.18%, and Sultan Syerif Kasirn II airport, Pekanbaru by 24,31%. On the other hand, decline in the number of foreign tourist visits occurs in 6 gates with the highest de­cline recorded by Adisurmarmo airport, Surakarta at 43.28%, and the lowest is recorded by Polonie air­port, Medan at 0.70%.

Compared to September 2012, number of foreign tourists arriving in Indonesia in October 2012 increases 0.70%. Increase occurs in some gates with the highest increase occurring at Selaparang airport/BIL, Mataram at 117.07%, followed by Sepinggan airport, Balikpapan at 42.78%. While, the lowest in­crease occurs in Soekarno Hatta airport, Jakarta at 1.47%.

Out of 668,341 foreign tourists arriving in Indonesia in October 2012, 15.49% are from Singapore, 12.94% from Malaysia, 12.70% from Australia, 10.32% from China, and 5.90% from Japan.

Business News - December 7, 2012 

INDONESIA CONDUCTIVE TO GROWING MANUFACTURING INDUSTRIES

Growth of big and medium manufacturing industry in quarter III/2012 which showed increase of 3.61% in quarter III/2012 made Indonesia poten­tial producer of manufacturing commodities from all over the country, to discover the best technol­ogy and innovation and solution for production of the most sophisticated machines in various indus­trial application. The various types of manufacturing products showing positive growth in quarter III/2012 compared to quarter III/2011 were various instru­ments for reparation like machinery installation (up by 23.24%) food (21.19%) chemicals and chemical-based products (20.43%) non-metal minery goods (17.65%), computers, electronic goods, and optic (15.75%), rubber, rubber-based goods, and plastic goods (14.42%).

For that matter the Indonesia Manufacturing Exhibition and Machine Tool Indonesia would be held in Jakarta in December 5 - 8, 2012 in Jakarta. The two exhibitions were excellent opportunity for the manufacturing communities from all over Indonesia toward the best technological invention and solution as well as processing solution by sophisticated ma­chines of various Industrial applications.

Indonesia had developed into a prominent manufacturing center globally. The manufacturing in­dustry and precision engineering continued to make rapid transformations to serve various industries. In­donesia’s economic growth which was estimated to reach 6.3% with foreign investment was expected to exceed USD 21.7 billion. This was disclosed by Malaysia Stephanie of Pamerindo Indoneasia expo or­ganizer.

This figure underscored Indonesia’s position as magnetic manufacturing center which contributed to the growth of import export center. The Manu­facturing Expo and machine Tools Indonesia 2012 promised access to technology and solution which contributed to faculitating efficiency enhancement in the manufacturing sector. On the other hand there were also industry types which posted negative pro­duction growth in quarter III 2011, i.e, the furniture industry which dropped by 15.5% and textile which slumped by 15.38% Machineries and equipments (12.94%) automotive trailer and trailer machines (9.7%) leather, leather good and footwear (9.67%) and paper and paper goods (8.83%).

The exhibition in 2011 last invited 2,400 participants of 38 countries which evidently served as platform for develop industry. With more than 23,371 regional buyers who came to visit this trade expo, the Manufacturing and Machine Tool Indonesia became an important event for the manufacturing industry. On the one hand various type of products displayed in this Manufacturing and Machine Tools Indonesia 2012 promised access to the sectors of automotive, aviation, medicine, electronics, oil and gas, maritime and shipping, building and construction to access the latest manufacturing technology available in the global market. 

Business News - December 7, 2012