Fitri Novia Heriani, Robert Sidauruk
A prerequisite for and efficient and properly functioning business sector is a comprehensive and consistent concept of industrialization as fundamental for the purpose of industrial development itself.
However, despite this need, industrial regulations frameworks in Indonesia remain fragmented between a number of sectors with favorable outcomes for particular interests.
This view was delivered by Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce (Kadin), during a focus group discussion on the framing of a national industrial policy platform held in Jakarta on Wednesday.
According to Kadin’s data, Surya explained that even though the national manufacturing industry has developed to represent 20.8% of the GDP, this is still lower than levels prior to the 1998 economic crisis.
To address this issue, Suryo suggested that in the future a national policy on industrial development must be more integrated.
“The concept of a national industry framework must be integrated. Regulations need to be changed to avoid business as usual characteristics and policy distortions due to sectorial conflicts of interest,” he emphasized.
Surya also noted the importance of improving the current taxation systems. These systems must be aligned with the purpose of creating a strong national industrial environment.
Sudirman M Rusdi, Kadin’s Deputy Chairman, is of the view that the major weakness of national industry is its great dependence of business entities for raw material import and debt for financing these businesses.
“We are capable of supplying our own raw materials and even turning out finished products for export. Great dependence on imports and the amount of debt makes Indonesia vulnerable to economic crises,” Sudirman asserted.
Sudirman explained that characteristics such as financing business by debt, lack of expertise in technology and the stagnation of research and development programs, contributes to the weakening of national industry.
Kadin takes the view that all the above issues are occurring as a result of inconsistent policies for framing a comprehensive national industrial concept. As a result, Industrial development programs have not been well integrated and coordinated.
(hot/kc)
Fitri Novia Heriani, Robert Sidauruk
A prerequisite for and efficient and properly functioning business sector is a comprehensive and consistent concept of industrialization as fundamental for the purpose of industrial development itself.
However, despite this need, industrial regulations frameworks in Indonesia remain fragmented between a number of sectors with favorable outcomes for particular interests.
This view was delivered by Suryo Bambang Sulisto, Chairman of the Indonesian Chamber of Commerce (Kadin), during a focus group discussion on the framing of a national industrial policy platform held in Jakarta on Wednesday.
According to Kadin’s data, Surya explained that even though the national manufacturing industry has developed to represent 20.8% of the GDP, this is still lower than levels prior to the 1998 economic crisis.
To address this issue, Suryo suggested that in the future a national policy on industrial development must be more integrated.
“The concept of a national industry framework must be integrated. Regulations need to be changed to avoid business as usual characteristics and policy distortions due to sectorial conflicts of interest,” he emphasized.
Surya also noted the importance of improving the current taxation systems. These systems must be aligned with the purpose of creating a strong national industrial environment.
Sudirman M Rusdi, Kadin’s Deputy Chairman, is of the view that the major weakness of national industry is its great dependence of business entities for raw material import and debt for financing these businesses.
“We are capable of supplying our own raw materials and even turning out finished products for export. Great dependence on imports and the amount of debt makes Indonesia vulnerable to economic crises,” Sudirman asserted.
Sudirman explained that characteristics such as financing business by debt, lack of expertise in technology and the stagnation of research and development programs, contributes to the weakening of national industry.
Kadin takes the view that all the above issues are occurring as a result of inconsistent policies for framing a comprehensive national industrial concept. As a result, Industrial development programs have not been well integrated and coordinated.
(hot/kc)