New industrial policy centers on technology<\/p>\n
JAKARTA (JP): The government announced on Friday it was
\nadopting a new industrial policy that would boost the use of
\ntechnology as a means to improve the nation's competitiveness.<\/p>\n
Minister of Industry and Trade Luhut Pandjaitan said the new
\npolicy would become the government's guideline in designing
\nfuture trade and industrial policies.<\/p>\n
\"It'll be a smart book that contains our grand strategy for
\nour national industries,\" he told reporters at a media briefing.<\/p>\n
Based on the policy's draft, the nation's economy would grow
\nfrom an agricultural-based economy to an industrial and finally a
\ntechnology-based economy.<\/p>\n
Luhut said that with the new policy the government would have
\na clear direction of where the economy was heading.<\/p>\n
To achieve this aim, he said, the government would adopt what
\nwas called the \"industrial cluster concept\".<\/p>\n
The concept groups industries based on one core industry, such
\nas the cigarette industry, which has several supporting
\nindustries like the packaging and marketing industries, that
\ndepend on the growth of the cigarette industry.<\/p>\n
\"This way, we can identify each industry down to its
\ndescendants,\" Luhut said.<\/p>\n
The draft identified five categories under which potential
\nindustrial clusters could be developed: natural-resource based
\nindustries, labor intensive industries, capital intensive
\nindustries, technology intensive-based industries and policy
\ndriven-based industries.<\/p>\n
The draft said that global competition required Indonesia to
\nimprove the competitiveness of its industries on an international
\nlevel.<\/p>\n
But Indonesia's competitiveness out of 47 countries dropped to
\n46 in 1999, from 40 in 1998, according to the Institute for
\nInstitutional Management Development (IIMD).<\/p>\n
To lift its ranking, the draft said, Indonesia must improve
\nthe technology content of its export products.<\/p>\n
According to the draft policy, most export-oriented
\nmanufacturing companies were not using modern technology in their
\nproduction activities.<\/p>\n
Based on a survey by the Organization for Economic Cooperation
\nand Development, only 3.56 percent of Indonesia's total export
\nvolume in 1998 was based on medium and high technology.<\/p>\n
Whereas, the World Economic Forum ranked Indonesia at number
\n48 out of 53 countries in applying research and development
\ntechnology.<\/p>\n
\"Thereby, Indonesia can only be regarded as a follower rather
\nthan a technology leader,\" the draft said.<\/p>\n
The draft further proposed the establishment of a national
\ncouncil of international competitiveness that would design
\npolicies related to increasing the country's competitiveness.<\/p>\n
It also suggested a cluster working group, whose job would be
\nto develop industrial clusters.<\/p>\n
Luhut said that new government regulations would follow to
\nsupport the policy once it was completed.<\/p>\n
He said the government was about to finalize the policy and
\nonly needed to publicize the draft for more input.<\/p>\n
\"We just need to report to the President on the progress we've
\nmade,\" he said, adding that the draft only awaited the
\nPresident's approval.<\/p>\n
However, he said he would also invite associations from
\nvarious industries and several universities to discuss the new
\nnational policy. (bkm)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/new-industrial-policy-centers-on-technology-1447893297",
"image": ""
},
"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
}