RI faces competition from Asian countries<\/p>\n
JAKARTA (JP): A report from the United Nations Industrial
\nDevelopment Organization (UNIDO) said the Indonesian
\nmanufacturing sector was facing increased competition from other
\nAsian countries, despite the brisk performance of its exports.<\/p>\n
Asif Hasnain, the UNIDO representative to Indonesia, said on
\nWednesday that despite strong overall export performance,
\nIndonesia was very dependent on imported production components.<\/p>\n
\"It is absolutely imperative that Indonesia take steps now to
\nimprove its international competitiveness in the manufacturing
\nsector,\" he said at a media conference, which also was attended
\nby the vice chairman of the Indonesian Chamber of Commerce and
\nIndustry, Fadel Muhammad.<\/p>\n
Shafiq Dhanani, team leader of the UNIDO\/UNDP project that
\nproduced the report, said the declining competitiveness was a
\nresult of the emergence of new competition for the labor-
\nintensive exports that Indonesia had dominated, and competition
\non the domestic market from lower-cost producers like China and
\nIndia.<\/p>\n
He said that to regain competitiveness and reduce costs it was
\nessential for Indonesian manufacturers to produce more components
\nlocally and cost-effectively.<\/p>\n
\"Even before the crisis, Indonesian manufacturers were
\nbeginning to face a more difficult environment due to
\nglobalization,\" Dhanani said.<\/p>\n
Indonesia's competitiveness in textiles, garments and footwear
\ndeclined in the second half of the 1990s compared to other
\ncountries in the Southeast and South Asian regions, Hasnain said.<\/p>\n
Following the 1997 financial crisis, the drastic devaluation
\nof the rupiah did not succeed in stimulating non-oil manufactured
\nexports, Hasnain said.<\/p>\n
\"The now much lower labor costs in dollar terms have also
\nfailed to restore Indonesia's competitiveness,\" he added.<\/p>\n
Hasnain called for the Indonesian manufacturing sector to
\nadopt a seven-point transformation agenda, supported by a white
\npaper on competitiveness in manufacturing. (tnt)<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/ri-faces-competition-from-asian-countries-1447893297",
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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