Bappenas to help set strategy for manufacturing sector<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The Ministry of Industry, together with the National
\nDevelopment Planning Agency (Bappenas), planned to set up a
\nnational strategy for the revival of the ailing manufacturing
\nsector, a senior official said.<\/p>\n
New Minister of Industry Andung A. Nitimihardja said that the
\nplan was discussed during the first Cabinet meeting of the new
\ngovernment of President Susilo Bambang Yudhoyono on Friday.<\/p>\n
\"We will set the strategy together with Bappenas,\" Andung told
\nreporters.<\/p>\n
He added that part of the strategy would be on how to push
\nbanks to lend more money to the manufacturing sector.<\/p>\n
The country's manufacturers have fallen on rough times since
\nthe late 1997 financial crisis marked by a five-fold drop in the
\nlocal currency and a surge in domestic interest rates during the
\nearly period of the crisis. That, in turn, inflated their dollar
\nand rupiah-based debts, sending some of them into bankruptcy,
\nwhile others had to scale down their businesses and lay off
\nemployees.<\/p>\n
But as the country starts to recover from the crisis, most
\nbanks remain reluctant to lend badly needed funds to the
\nmanufacturing sector due to the lingering risks amid slow
\nprogress in debt restructuring. This has created difficulties
\nfor the manufacturers, who need to obtain working capital to
\nreplace aging machinery, a condition which has made them less
\nefficient and uncompetitive against more efficient manufacturers,
\nparticularly those from China, both in the domestic and overseas
\nmarkets.<\/p>\n
The poor investment climate in the country has further
\nworsened the situation.<\/p>\n
Observers have said that since the financial crisis, the
\ngovernment has failed to come up with a clear strategy to revive
\nthe troubled sector.<\/p>\n
Andung said that his office would review the blueprint
\nprepared by the previous minister of industry and trade Rini MS
\nSoewandi, and if possible, adopt part of the strategy.<\/p>\n
Rini's strategy consisted of mid-term and long-term
\ndevelopment plans for various manufacturers including textile and
\ntextile products, electronics, automotive, components,
\ncommunication technology equipment and machinery.<\/p>\n
The development plans were divided into two timeframes. The
\nfirst one is from 2005 to 2009, while the longer term strategy is
\nfor 2010 until 2020.<\/p>\n
Furthermore, Andung said that he would require at least a week
\nbefore deciding on the programs, after intensive talks with his
\nsenior officials and other related ministers.<\/p>\n
Starting on Monday, the minister and his staff will have an
\noffice at a building previously called the ministry of industry
\nand trade on Jl. Gatot Subroto, South Jakarta. While Minister of
\nTrade Mari E. Pangestu will move into an office on Jl. Ridwan
\nRais in Central Jakarta. Under previous governments, the two
\nministries were merged into one, the ministry of industry and
\ntrade, which had two office buildings.<\/p>",
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"sponsor": "Okusi Associates",
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