Fitri Novia Heriani, Yanuar Pribadhie
The Government has much to do before ushering in the ASEAN Economic Community (AEC) in 2015. Two items that have been progressed to a degree are the issue of Presidential Regulation No. 28 of 2008 on National Industry Policy, and the recent enactment of the Law on Industrial Affairs.
However, according to Hendri Saparini, Executive Director of the Centre of Economic Reform, the consequences of these set of policies remain to be implemented by the Government. Hendri believes that the Government needs to be encouraged to review its national industry policy which should be based on integrated comprehensive strategies.
“The Presidential Regulation mentions prioritized industries such as agricultural, transportation, and telematics. However, we have not seen an improvement in these respective industries,” Hendri says.
To review this policy, Hendri suggests that the Government change the prioritized industries to be based on local content. Hendri is critical that the current determination of prioritized industries is more based on considerations related to direct foreign direct investment (FDI).
Meanwhile, Ina Primiana, economics professor at Universitas Padjadjaran, agrees that the national industry policy should be reviewed in 2014. Ina points out that to date the average growth of prioritized industries is always below 6 percent.
“Some industries have a trade surplus but cannot overcome the deficit with several major partner countries,” says Ina.
Ina states that this condition is caused by an absence of commitment from the related ministries/institutions as a whole in supporting an integrated approach to national prioritized industries.
“Therefore, coordination between related ministries and institutions to encourage industries and acceleration of infrastructure development are important if Indonesia wants to benefit from the organization of AEC 2015,” Ina concludes.
(hot/kc)
Fitri Novia Heriani, Yanuar Pribadhie
The Government has much to do before ushering in the ASEAN Economic Community (AEC) in 2015. Two items that have been progressed to a degree are the issue of Presidential Regulation No. 28 of 2008 on National Industry Policy, and the recent enactment of the Law on Industrial Affairs.
However, according to Hendri Saparini, Executive Director of the Centre of Economic Reform, the consequences of these set of policies remain to be implemented by the Government. Hendri believes that the Government needs to be encouraged to review its national industry policy which should be based on integrated comprehensive strategies.
“The Presidential Regulation mentions prioritized industries such as agricultural, transportation, and telematics. However, we have not seen an improvement in these respective industries,” Hendri says.
To review this policy, Hendri suggests that the Government change the prioritized industries to be based on local content. Hendri is critical that the current determination of prioritized industries is more based on considerations related to direct foreign direct investment (FDI).
Meanwhile, Ina Primiana, economics professor at Universitas Padjadjaran, agrees that the national industry policy should be reviewed in 2014. Ina points out that to date the average growth of prioritized industries is always below 6 percent.
“Some industries have a trade surplus but cannot overcome the deficit with several major partner countries,” says Ina.
Ina states that this condition is caused by an absence of commitment from the related ministries/institutions as a whole in supporting an integrated approach to national prioritized industries.
“Therefore, coordination between related ministries and institutions to encourage industries and acceleration of infrastructure development are important if Indonesia wants to benefit from the organization of AEC 2015,” Ina concludes.
(hot/kc)