Sunday, 30 November 2014


There is until a number of pending matters expected to be completed within this year, both for the Ministry of Industry of the United Cabinet II or the remainder of this year as part of the period of office of the Ministry of Industry under the President-elect Joko Widodo and Vice President Jusuf Kalla. After officially opening the Cahaya Timur Exhibition at Plaza Industry on Tuesday (October 14), Industry ,Minister, M.S Hidayat, stated that the pending matters (the rest of discussion which is still pending) are, among others, the complementation of RPP RIPIN (National Industry Development Master Plan) and the completion of land for sugar industry development.

“Because the discussion about RIPIN has just started in February, we expected that before the end of this year, the discussion will be finished because now the discussion has reached the level of harmonization with the Ministry of Justice and Human Rights. The Ministry of Industry should be more cautious given that stipulation of RIPIN must include a period of 20 years to come, “he said, accompanied by a number of officials of the Ministry of Industry and the Director General of Domestic Trade of the Ministry of Trade, Srie Agustina.

In addition, there is also a resolution of gas issue, which is associated with the facilitation of the construction of fertilizer plant of Kaltim-5. Related to sugar mills, this problem is related to the provision of land, because it is expected that there will be changes in the revitalization of sugar mill industry, related to the provision of relief for machinery purchase. In regard to the development of the natural gas industry and construction of Teluk Bintuni Industrial Area, West Papua, there has been gas allocation for the development of fertilizer industry in Teluk Bintuni at 180 mmscfd, which availability is guaranteed.

As for gas allocation for the development of petrochemical industry will be sought from other sources in consideration of the economic value. The Industry Minister has sent a letter to the president regarding the draft Presidential Regulation on the development of natural gas industry in Teluk Bintuni, West Papua and the follow-up through the completion process of the Presidential Regulation on the development of natural gas industry in Teluk Bintuni.

Eastern Indonesia consists of 12 provinces that have relatively similar natural resources. The strength of each region in Eastern Indonesia lies in the ability of the local human resources and the availability of productive land. However, of the abundant wealth, only part of it that has been exploited. That’s why innovation is needed through natural resource based creative industries.

“We realized that there are many industries, both nation-scale ones or those who have exported their products abroad. 44 small and medium industries (SMIs) in handicraft sector from various provinces in eastern Indonesia originate, among others, from West Nusa Tenggara, South Sulawesi, Gorontalo, Maluku, North Maluku, Papua, and West Papua. The products exhibited include coconut shell handicrafts, batik, weaving crafts, silver crafting, cukli, shells, jewelry, and a variety of food products made of chocolate, seaweed, and passion fruit.

In 2013, the GDP of SMEs contributes 34% to the industrial GDP. With a ratio of 60% of SMEs in Java and 40% outside Java expected through various government programs, this year the number has changed to 70%. The government is promoting exhibition like this, because in eastern Indonesia, creativity-based industry subsectors can be cultivated in a more specific scope, especially for arts, handicrafts, design, and fashion. (E)

Business News - October 17, 2014

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