Kadin Describes Industrialization Problems

Jumat, 07 Februari 2014 | 10:48


Chairman of Indonesian Chamber of Commerce and Industry (Kadin) Suryo Bambang Sulisto said structural issues become major problem for the current national industrialization process.“Industrialization process in Indonesia faces structural problems such as infrastructure, including land provision for infrastructure development, energy supply availability, bureaucracy service, as well as long and expensive licensing process,” he said in the 2014 Trade Ministry’s work meeting in Jakarta, Thursday (2/6).
 
According to him, Indonesia also has other problems such as manpower productivity as well as labor issues and regulation that makes the country seems have no other options than to participate in free economy.
 
Yet, he reminded that the free market adopts ‘the strong will survive’ principle so that it is crucial for Indonesia to ensure its economic strength upon the implementation of Asean free market.
 
“The definition of strong economy more refers to the independence of the development internally than the defense from external elements,” he said. Moreover, the industrialization process could not be performed on one sector or ministry only. It requires total policy integration among sectors, stakeholders, and regions.
 
“Currently, the undeveloped integration has caused Indonesia to be sluggish in capturing opportunity and responding global policy. In this case, Trade Industry takes central role,” he said.
 
He emphasized that the industrialization is one state’s social change process to be more contemporary. The industrialization in one country is generally initiated with a growth of plants for heavy tools, machines, and raw materials.
 
For instance, in 20th century, Korea and China have started to develop basic industry in the form of large industry to manufacture ship raw materials, steel, and other tools.
 
Meanwhile, Taiwan started the industrialization with the dynamicization of small and medium companies to be large scale.
 
“Today, it will be not easy for Indonesia to start the industrialization. Yet, we should take a start. The challenge will be the obtaining of proper technology since the technology on strategic means protect the economy,” he said.

by Renat Sofie Andriani
source http://business.bisnis.com