Development plan short on details<\/p>\n
Zakki P. Hakim, The Jakarta Post, Jakarta<\/p>\n
The newly unveiled government five-year development plan raises
\nmore questions than answers, notably in the manufacturing sector,
\nas not only does it contain targets that are ambitious, it is
\nalso lacking in steps to move from basic into more sophisticated
\nmanufacturing process.<\/p>\n
Drawn up by the National Development Planning Agency
\n(Bappenas), the program -- called the Mid-term Development Plan
\n(RPJM) 2004-2009 -- targets an average growth of 8.56 percent for
\nthe manufacturing sector during that period to help the economy
\nexpand by 6.6 percent per annum.<\/p>\n
However, questions have already arisen as to how the targets
\ncould be achieved, considering the manufacturing sector in the
\ncountry had been growing at around 5 percent since the financial
\ncrisis in the late 1990s.<\/p>\n
The program was absent in explaining government plan to
\ngradually move from basic manufacturing products such as textile
\nand footwear into an industry that needs higher human resources
\nskill and technology such as semiconducter and computers, one
\nlegislator said.<\/p>\n
As economist-turned-legislator Zulkieflimansyah puts it this
\nway, \"It is pointless now to have such a high growth if we keep
\nmanufacturing or producing the same products over and over again,
\nsay 10 years from now.\"<\/p>\n
Under the five-year plan, the government would focus on 10
\npriority industry clusters. They are in food and beverages,
\nseafood and maritime products, textiles and clothing, footwear,
\npalm oil, wood products, rubber and rubber products, pulp and
\npaper, electrical machinery and appliances and petrochemical
\nproducts.<\/p>\n
The sectors were chosen based on their ability to absorb
\nworkers, meet basic domestic needs such as food and medicine,
\ndevelop and process agricultural and maritime products as well as
\nother natural-based resource materials, and on their export
\npotential.<\/p>\n
A document containing more detailed steps and sectors has also
\nbeen issued by the Ministry of Industry to support the medium-
\nterm program.<\/p>\n
Still, Zulkiefli questioned the government's steps to emerge
\nfrom the trap of industrial stagnation which the country
\ncurrently faces.<\/p>\n
\"Our top manufacturing products today are the same as what we
\nhad back in the 1970s,\" said Zulkiefli, a United Kingdom-trained
\neconomist specializing in industrial policy.<\/p>\n
He pointed at South Korea as an example.<\/p>\n
The nation had similar top products in 1970s, but after a 30-
\nyear process of industrialization, it has now emerged as a giant
\nproducer for semiconductors, computers, automobiles,
\npetrochemicals, communication gadgets, ships, steel plates,
\nmedical equipment, synthetic fibers and electronics parts.<\/p>\n
\"It is relatively the same with Malaysia and Thailand too.
\nIndonesia has never had an explicitly articulated blueprint,
\nunlike the ones created by South Korea decades ago or Malaysia
\nand Thailand years ago,\" he added.<\/p>\n
\"Still, the Ministry of Industry must be credited for
\nproducing a detailed policy in a timely fashion. However, it
\nlacks explanation on things such as technological transfer and
\nthe process of industrialization,\" said Zulkiefli, a member of
\nthe House of Representatives Commission VI overseeing industry,
\ntrade, investment, small and medium enterprises and state-owned
\nfirms.<\/p>\n
Rachmat Gobel, Indonesian Chamber of Commerce and Industry
\n(Kadin) vice chairman for industry, technology and maritime
\naffairs, also said it would be unlikely the government could
\nreach the target this year.<\/p>\n
\"Maybe next year, but only after the government had dealt with
\nnumerous problems discouraging the private sector at the moment,\"
\nhe said.<\/p>\n
Nevertheless, he said that policy was at least on the right
\ntrack, but the private sector, in the shorter term, would prefer
\nto see improvement in issues such as rampant smuggling, taxation,
\nlabor laws and lack of infrastructure.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/development-plan-short-on-details-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}