Jakarta, Jan 20 (Antara) - Indonesia will focus on developing its downstream industry to process raw materials and export finished goods with added value in order to catch up with other Asian countries, such as Japan.
To achieve the goal, the government hopes that development of industry should be planned in short, medium and long term in such a way that it becomes a roadmap for the next 100 years.
For this purpose, the government of Joko Widodo (Jokowi) has established a National Industry and Economic Committee (KEIN), assigned to come up with recommendations and formulate a strategy that will be combined with other concepts for development.
"The combination will enable us to work out details on development planning in the short, middle and long-term. I have asked for a roadmap for the next 50 to 100 years so that we have guidelines that can help us reach our objectives," the president said at the State Palace on Wednesday.
Therefore, KEIN will focus on working out a concept regarding the development of downstream industry where raw materials should be processed in the first place than simply exporting these,
"We will direct our country towards the goal of becoming a progressive industrial country, like Japan, South Korea or Taiwan. We will move in that direction," newly installed KEIN Chairman Soetrisno Bachir said at the State Palace.
He expressed optimism that Indonesia will become an industrial country with high economic growth. "It is now time to boost economic growth. During the current government's tenure, the industry must grow at a higher level," the KEIN chairman said.
"We discussed today that the time is ripe for Indonesia to carry out its industrialization program," said Soetrisno Bachir.
He said that Indonesia must not remain merely a supplier of raw materials but should become an exporter of finished goods.
The falling oil prices, as per the KEIN, can add momentum to Indonesia's move to carry out its industrialization program.
"The oil production cost will also decline. We do face a small constraint, namely the banking interest rate, which is still relatively high, regardless of inflation that has already come down," the KEIN chairman noted.
He said President Joko Widodo (Jokowi) would have preferred that the bank's lending rate also goes down speedily this year so that Indonesian products would become more competitive, especially in the current ASEAN Economic Community (AEC) era.
"Since we have members who are professionals and entrepreneurs, we hope the inputs provided by the KEIN would turn out to be implementable recommendations and not merely remain on paper," Soetrisno said.
Therefore, President Jokowi hoped the KEIN would help present a more detailed picture of industrial development planning.
"Although we already have a roadmap of economic and industrial development, KEIN will provide further data and better ways of planning," President Jokowi said after receiving the organizing committee of the 2016 National Press Day Commemoration here on Wednesday.
He said the members of KEIN included economic players, academicians and business leaders. "The combination will enable us to work out details on development planning for short, middle and long-term developmental process. I have asked for plans that lay a roadmap for the next 50 to 100 years so that we have certain guidelines that help us direct our objectives," the president said.
He said that short-term plan must be put in place because the government was doing its best to create as many jobs as possible.
The president also explained the difference between KEIN and the National Economic Committee (KEN). The head of state explained KEIN's prime focus was development of downstream industry and the industrialization program which would provide back-up for economic growth.
"Raw materials should contribute to the efforts to enhance value addition," he said.
In this case, the Indonesian presiden the KEIN to give concrete inputs and recommendations that can be implemented.
"(If you) wish to give recommendations, give us tangible ones that can be executed," presidential spokesman Johan Budi said meanwhile after the inauguration of the new board of KEIN at the Merdeka Palace on Wednesday.
Citing an example, President Joko Widodo referred to credit interest which is not yet down, despite the fact that inflation has already declined, he said.
"Inflation was recorded at 3.3 percent at the end of 2015, while in 2014 it was 8.0 percent. Inputs from KEIN are expected on this account," he said.
Johan said President Joko Widodo also underlined that it is also KEIN's task to study the economy and industry.
"Based on the results of their study, they would give recommendations to the President. They must coordinate with the Coordinating Minister for Economic Affairs and other ministers concerned with economic and industrial affairs," he said.
In the meantime, legislator Anang Hermansyah of Commission X on creative economy affairs of the House of Representatives (DPR), said the newly KEIN had also to pay attention to the development of creative economy.
"I hope that the KEIN will also pay attention to the development of creative economy in Indonesia," he said.
He said it is expected of the establishment of the KEIN, and the newly installed members to help the government in boosting the growth of creative economy in Indonesia.
Anang Hermansyah, who is also the chairman of the National Mandate Party (PAN) faction in the DPR, expressed his confidence that the new institution would help develop creative economy in the country. Moreover, Ipang Wahid, who is a member of KEIN and a creative economy businessman, could serve as the prime motivator and trigger efforts to concretize the empowerment of human resources in the creative economic sector.
He said that a number of problems in the creative economy sector should be addressed and resolved soon through cooperation between the KEIN and the Creative Economy Agency (Bekraf).
"The recent problems such as the issue relating to creativity rights, as regulated in Law No. 28/2014 on Copy Rights, should be addressed seriously," he said. ***3***(A014/INE)EDITED BY INE/H-YH(T.A014/A/BESSR/A/Yosep) 20-01-2016 22:35:51 |
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