Industrial sector still faces many problems<\/p>\n
JAKARTA (JP): Indonesia's industrial sector still faces many
\nproblems despite its rapid growth over the last few years, an
\nacademic said yesterday.<\/p>\n
Center for Information and Development Studies' researcher,
\nDidin S. Damanhuri, said if the problems were not resolved now,
\nnew and more complicated ones would emerge.<\/p>\n
Didin is also the director of the Bogor Agricultural
\nUniversity's information resources agency.<\/p>\n
\"There are at least six problems the country's industrial
\nsector still faces,\" he was quoted by Antara as saying.<\/p>\n
These problems include the concentration of the economy in the
\nhands of a few people and the many monopolies.<\/p>\n
Didin said the other problems were economic domination by a
\ngroup of rent-seekers, the weak relationship between companies
\nwithin an industry and the small number of middle-level
\nindustries which caused weak industrial structures.<\/p>\n
He said state companies were also unable to supply industries
\nwith raw and semi-processed materials and failed to encourage the
\nuse of technology.<\/p>\n
Another problem was that foreign investors chose to do
\nbusiness in Indonesia because of its huge domestic market and not
\nas an export base.<\/p>\n
Didin said deregulation over the past decade had not changed
\nIndonesia's industrial structure.<\/p>\n
\"The added value enjoyed by industries has not managed to
\naffect small and medium industries. So far it can only be enjoyed
\nby big industries,\" he said.<\/p>\n
Didin was confident Indonesia's big industries, with their
\nhuge capital, advanced technology and wide market access, were
\nprepared to compete in the free market era.<\/p>\n
\"Although there are signs that the industrial sector is
\ncurrently not efficient and professional enough, it won't be too
\ndifficult for them to adapt to the rules of a free market,\" he
\nsaid.<\/p>\n
But small and medium businesses, home industries and
\nagriculture-based industries would have a tough time entering the
\nfree market era, he said.<\/p>\n
He said special attention should be given to small and medium
\nbusiness because their problems often had \"unexpected economic
\nand political implications\" because they operated close to the
\ngrass roots level. (pwn)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/industrial-sector-still-faces-many-problems-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}