Wednesday, 3 July 2013

IN ANTICIPATING AEC, THE GOVERNMENT PRIORITIZE PREMIUM INDUSTRY SECTORS



The Government prioritized the industrial sectors to be developed in the effort to capture the ASEAN market, such as the agro based industry (CPO, cacao, rubber), processed fish industry, textile-and-textile products, footwear industry, furniture, Food and beverages, fertilizers and petro-chemicals, machinery and equipments, basic metal industry, and iron & steel. Those industries were developed as they had better competitiveness than those of the ASEAN states.

Upon attending the panel discussion entitled “Anticipating ASEAN Economic Community (AEC) 2015” in Jakarta, the Minister of Industry M.S. Hidayat, flanked by the Ministry of Trade Gita Wirjawan and Head of the Coordinating Board of Investment (BKPM) Chatib Basri made his presentation on the Application of ASEAN Economic Community (APEC) 2015, Indonesia still had the opportunity to benefit from the Asean region.

Some opportunities to be taken by Indonesia were among other: Asean population which numbered 590 million people or 8 percent of the world’s population, GDP growth of 5.6% (2010) and stable macro economy as indicated by inflation 3.5%. AEC 2015 might also draw foreign investment which would create multiplier effect, to ease formation of joint ventures with ASEAN companies which would open access to raw materials not available at home.

In that opportunity Minister Hidayat also mentioned performance of the non oil-gas sector accumulatively until Quarter III 2012 which was positive, where growth of the processing industry of the non oil-gas sector reached 6.5%. The growth was thanks to high investment and domestic consumption. In addition to that export of the industrial sector also contributed significantly to national export by 60.02 percent.

The Government set target for development of non oil-gas processing industry 2013 which grew by 7.13 percent and employment of 400 thousand workers, export of industry USD 125 billion. Foreign Investment (PMA) USD 12 billion and PMDN Rp 42 trillion.

Therefore, in the effort to protect the domestic market against imported similar products from ASEAN states, the Government was developing industrial sectors among other the automotive industry, electronics, cement, garment, footwear, food and beverages, and furniture.

In anticipating AEC 2015, the Government was also making preparations to take measures which was non-sect oral, among others to intensify illumination process of AEC 2015 to stakeholders of the industry, to propose acceleration of implementation of safeguard and anti-dumping for certain products, to increase testing laboratory facilities and to promote competence of human resources in industry, to apply Indonesia National Labor Competence (SKKNI) on each respective industrial Labor Competence (SKKNI) on each respective industrial sector, and to strengthen IKM Small and Medium Industry and development of new entrepreneurs in industry.  


Business News - January 18,2013

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