Posted on 29 Jun 2015
Ministry to update masterplan to boost RI industry sector
The Industry Ministry is set to
revise the country’s industrial masterplan, with export-oriented businesses and
manufacturing that uses locally produced raw materials to be given more state
support.
According to Industry Minister Saleh Husin, those two types of industry are
most able help the country gradually reduce its dependence on imported raw
materials and boost the supply of foreign exchange.
“Of the 10 priority industries, I think industries that rely mostly on local
raw materials and those that are export-oriented, such as food and beverages,
pulp and paper and smelters, are ready to take off,” Saleh said on Friday.
At the same time, he acknowledged that the government could not reduce other
industries’ dependence on imported raw materials.
The revision, Saleh added, was part of efforts to create a more comprehensive
set of policies and build synergy with other ministries and state institutions.
The masterplan, known as the National Industry Development Masterplan (RIPIN),
has been formalized into an Industry Minister regulation that sets 10 priority
industries for the 2015-2035 period in a bid to enlarge industry’s role in the
national economy.
For the revision process, the ministry is seeking insight from various
stakeholders, including manufacturers and analysts.
“We will hold routine meetings to receive input and ideas, so that we can
develop a more mature set of policies that will be synchronized with other
ministries and institutions to support our local industries,” Saleh said after
a meeting with business owners, adding that the revision had yet to be
formulated.
The administration of President Joko “Jokowi” Widodo is continuing with the
RIPIN introduced by the previous administration of Susilo Bambang Yudhoyono,
which divided 10 priority industries into three categories — backbone,
supporting and upstream.
The backbone industries comprise food; pharmacy, cosmetics and medical devices;
textiles; leather, footwear and miscellaneous; transportation equipment,
electronics and telematics; and power plants.
The masterplan further designates capital goods, components and auxiliary
materials as supporting industries, while the upstream category includes
agro-business; basic metals and non-metallic minerals; and basic chemicals.
The RIPIN visualizes Southeast Asia’s largest nation becoming an innovative and
technology-based industrial country in the long term, with a strong, healthy,
fair and competitive domestic industry structure.
Under the masterplan, growth of the country’s non-oil and gas industries is
targeted to reach 6.8 percent this year, rising to 8.73 percent and 9.53
percent by 2020 and 2025, respectively.
Domestic economic growth fell to 4.7 percent in the first quarter of this year
from 5.2 percent in the same period last year, with overall exports declining
11.84 percent to US$64.72 billion by the end of May.
During Friday’s meeting, Core Institute executive director Hendri Saparini said
the current RIPIN did not set a clear goal of boosting the country’s
manufacturing industry, which, he argued, should be made Indonesia’s economic
engine, pointing out that before the 1998 economic crisis, manufacturing
contributed 60 percent of the country’s total exports.
“The Jokowi administration has pledged to reverse the current state of affairs,
in which 60 percent of our exports are primary raw materials. We should take
note that many manufacturing countries have clear sets of policies and
objectives that fully support their priority industries,” Hendri said.
The
Industry Ministry is set to revise the country’s industrial masterplan,
with export-oriented businesses and manufacturing that uses locally
produced raw materials to be given more state support.
According
to Industry Minister Saleh Husin, those two types of industry are most
able help the country gradually reduce its dependence on imported raw
materials and boost the supply of foreign exchange.
“Of the 10
priority industries, I think industries that rely mostly on local raw
materials and those that are export-oriented, such as food and
beverages, pulp and paper and smelters, are ready to take off,” Saleh
said on Friday.
At the same time, he acknowledged that the government could not reduce other industries’ dependence on imported raw materials.
The
revision, Saleh added, was part of efforts to create a more
comprehensive set of policies and build synergy with other ministries
and state institutions.
The masterplan, known as the National
Industry Development Masterplan (RIPIN), has been formalized into an
Industry Minister regulation that sets 10 priority industries for the
2015-2035 period in a bid to enlarge industry’s role in the national
economy.
For the revision process, the ministry is seeking insight from various stakeholders, including manufacturers and analysts.
“We
will hold routine meetings to receive input and ideas, so that we can
develop a more mature set of policies that will be synchronized with
other ministries and institutions to support our local industries,”
Saleh said after a meeting with business owners, adding that the
revision had yet to be formulated.
The administration of
President Joko “Jokowi” Widodo is continuing with the RIPIN introduced
by the previous administration of Susilo Bambang Yudhoyono, which
divided 10 priority industries into three categories — backbone,
supporting and upstream.
The backbone industries comprise food;
pharmacy, cosmetics and medical devices; textiles; leather, footwear and
miscellaneous; transportation equipment, electronics and telematics;
and power plants.
The masterplan further designates capital
goods, components and auxiliary materials as supporting industries,
while the upstream category includes agro-business; basic metals and
non-metallic minerals; and basic chemicals.
The RIPIN visualizes
Southeast Asia’s largest nation becoming an innovative and
technology-based industrial country in the long term, with a strong,
healthy, fair and competitive domestic industry structure.
Under
the masterplan, growth of the country’s non-oil and gas industries is
targeted to reach 6.8 percent this year, rising to 8.73 percent and 9.53
percent by 2020 and 2025, respectively.
Domestic economic growth
fell to 4.7 percent in the first quarter of this year from 5.2 percent
in the same period last year, with overall exports declining 11.84
percent to US$64.72 billion by the end of May.
During Friday’s
meeting, Core Institute executive director Hendri Saparini said the
current RIPIN did not set a clear goal of boosting the country’s
manufacturing industry, which, he argued, should be made Indonesia’s
economic engine, pointing out that before the 1998 economic crisis,
manufacturing contributed 60 percent of the country’s total exports.
“The
Jokowi administration has pledged to reverse the current state of
affairs, in which 60 percent of our exports are primary raw materials.
We should take note that many manufacturing countries have clear sets of
policies and objectives that fully support their priority industries,”
Hendri said. - See more at:
http://www.thejakartapost.com/news/2015/06/29/ministry-update-masterplan-boost-ri-industry-sector.html#sthash.shn0sWOJ.dpuf
