Govt to focus on high-tech industries for free trade<\/p>\n
BANDUNG, West Java (JP): The government will focus its policy
\non the development of certain high-tech industries to prepare the
\ncountry to compete in regional free trade, which will start in
\n2000, a senior minister said.<\/p>\n
Speaking at the Bandung Institute of Technology, Coordinating
\nMinister for Production and Distribution Hartarto Sastrosoenarto
\nsaid Saturday that with a common Southeast Asian market of some
\n500 million people by 2000, it is feasible to develop such high-
\ntech industries.<\/p>\n
\"Indonesia must work hard and be able to compete with
\nSingapore, Malaysia, Thailand and the Philippines,\" Hartarto
\nsaid in his speech before the institute's senates.<\/p>\n
Hartarto was here to accept an honorary doctoral degree from
\nthe institute. He is the third person to receive such a degree
\nafter Indonesia's first president Sukarno and Soetaryo Sigit, a
\nformer director general of mines.<\/p>\n
Indonesia, along with the other members of the Association of
\nSoutheast Asian Nations (ASEAN) -- Brunei, Malaysia, the
\nPhilippines, Singapore, Thailand and Vietnam -- has committed to
\npursuing a freer trade in the region under the ASEAN Free Trade
\nArea (AFTA) agreement by 2003.<\/p>\n
By that time, import tariffs on goods included for the free
\ntrade in ASEAN member countries will be in the range of 0 percent
\nto 5 percent. However, by 2000, most of the goods, mostly
\nindustrial goods included on the free trade list, will already be
\nin that range.<\/p>\n
By the end of this century, ASEAN will have incorporated
\nCambodia, Laos and Myanmar as members, bringing together a common
\nmarket of some 500 million people.<\/p>\n
To win competition in such a free market, Hartarto said
\nIndonesia should from now on develop high-tech industries in
\ntelecommunications; electronics, including semiconductors;
\nautomation and precession machinery, including medical equipment;
\nadvanced materials; fine chemical and pharmacy; sea, land and air
\ntransportations; energy-supporting goods, including electricity
\ngeneration and distribution; and pollution controls, as well as
\nbiotechnology.<\/p>\n
He added that it is necessary for Indonesia to introduce
\nfiscal incentives to stimulate the development of such high-tech
\nindustries so that they can compete in free trade. \"Such high-
\ntech industries should be given fiscal incentives.\"<\/p>\n
In a bid to boost more industrial exports, the government has
\nannounced a new regulation regarding tax holiday incentives for
\nnew industrial plants producing certain products.<\/p>\n
However, up to now, the government has not announced what
\nkinds of industries they are. It only said that they must be
\nproducing raw materials or intermediary materials for other
\nindustries or working in the upstream level or producing new
\nproducts.<\/p>\n
Hartarto explained that to win business, Indonesia should now
\ncombine the broad based\/broad spectrum industrial development
\nstrategy with the strategy of developing leading export
\ncommodities.<\/p>\n
The leading export commodities are the products of the broad-
\nbased industrial development strategy, which has been pursued by
\nthe government for over 25 years.<\/p>\n
The leading export commodities include textiles and textile-
\nrelated products, wood products, electronics, leather and leather
\ngoods, steel, machinery and automotive, pulp and paper, as well
\nas drinks and foods and jewelry.<\/p>\n
To maintain and even boost the competitiveness of Indonesia's
\nindustrial export products on the international market, Hartarto
\nsaid, they must be supported by strong applied research and
\ndevelopment centers, including those run by private or state
\ninstitutions.<\/p>\n
He acknowledged that the development of such applied research
\ncenters by the private sector has been slow due to the absence of
\nincentives. Only recently, has the government promised fiscal
\nincentives to those who pursue applied research and development.<\/p>\n
\"Therefore, we must encourage certain large companies to
\npursue applied research and development with the support of
\nfiscal incentives,\" Hartarto said.<\/p>\n
As for small and medium-scaled enterprises, they are advised
\nto forge closer ties with applied research and development
\ncenters owned by state institutions or universities. (rid)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-to-focus-on-high-tech-industries-for-free-trade-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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