Indonesian industrial
sector still faces a number of challenge in welcoming the ASEAN Economic
Community (AEC) 2015. However, if it can be put to good use, it would be a
great opportunity for the national industrial product. The big challenge for
Indonesia given the very large number of population is if Indonesia cannot
become market player, it will be the largest target market for ASEAN countries.
Deputy minister of
industry, Alex SW Retraubun, in Jakarta, on Wednesday (June 11), believed that
the AEC moment is an important historical moment for Indonesia. Indonesia is
considered necessary to take an important step in developing the national
industry. Leading industrial sectors should be able to dominate the ASEAN and
the domestic markets. Indonesia should be able to become a major player in the
country. Currently, there are nine sectors which are the focus of development
is on the automotive, electronics, food, cement, apparel, footwear (casual
shoes), furniture, food & beverages sectors.
Alex said that the
government will continue to take strategic steps to create a synergy of
national industrial and trade policy development in meeting the challenges
ahead and realize the ideals of national development. The strategic steps are
to better prepare it self in facing the increasingly tight competition among
ASEAN countries trough the implementation of AEC 2015.
The Deputy Ministry of
industry explained that in the midst of an economy which is not yet stable,
non-oil & gas processing industry grew by 5.56% or higher than the economic
growth of 5.21%. Industry sectors which experienced high growth are food, beverages
and tobacco industry at 9.47%; transportation equipment, machinery and equipment
at 6.03%; and wood and other forest product at 5.17%.
Meanwhile, exports of
industrial product in the first quarter of 2014 amounted to USD29.27 billion,
an increase of 3.55% over the same period in 2013.Exports of industrial product
accounted for 66.05% of total national exports. Industrial products trade
deficit has been reduced by 87.78%, from USD3.87 billion in the first quarter
of 2013 to USD473.8 million in the first quarter of 2014.
This is because there is a
surplus of USD173.9 million in February 2014 and USD416.2 million in March
2014. With the efforts made by the government and industry stakeholeders, we
are quite optimistic that the trade performance of industrial products will be
more positive. On the other hand, investment performance of the industrial
sector still needs to be further improved.
Another challenge,
according to Alex, is to reduce the importation of raw materials the cause
current account deficit. The government is committed to improving the
performance of the industry through a number of steps. One step is to improve
the performance of investment, such as domestic investment (PMDN) and foreign
investment (PMA). Domestic investment reached IDR 11.11 trillion, an increase
of 1.73%. While, foreign investment reached USD3.49 billion. This should be a
concern given that investment is one of the growth drivers which absorbed
workers in the industrial sector.
He added that the problem
of raw material importation is believed to be resolved after the passage of Law
No. 3/2014 concerning Industry the Law mandates the existence of National
Industrial Development Master Plan (RIPIN). The focus of national industrial
development has been set on 24 priority industries categorized based on source
of raw materials, labor usage, and technology content. There are four groups of
priority industries, among others, mineral, oil & gas, and coal-based
industries; agro-based industries, and human resource and technology-based
industries. (E)
Business News - June 11, 2014
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