9 Industry Challenges in Indonesia to Win on the Global Stage

Minister of Industry

The Ministry of Industry continues to strive to solve various challenges that are being faced by industrial players in the country, in order to accelerate the development of national manufacturing so that it is more competitive in the global arena.

“At least we have mapped, there are nine challenges. We are actively coordinating with all stakeholders to find a solution, “said Minister of Industry, Agus Gumiwang Kartasasmita, in Jakarta.

The Minister of Industry mentioned the nine challenges, namely related to raw and supporting materials, infrastructure, utilities, availability of experts, pressure on imported products, plastic waste as B3 waste, obstacles to the small and medium industrial sector (IKM), logistics in the industrial sector, as well as on strengthening the industrial sector database.

“We are determined to keep the industry from getting raw materials and supporting materials, one of which is gas supply,” he said through a written statement.

In June 2020, the government realized a reduction in natural gas prices for seven industrial sectors, namely the fertilizer, petrochemical, oleochemical, steel, ceramics, glass and rubber gloves industries.

“There are 176 companies from seven sectors currently receiving gas price reduction facilities with a total volume of 957.3 thousand to 1.18 million BBUTD,” said the Minister of Industry.

Meanwhile, regarding the challenges of infrastructure and utilities, the Ministry of Industry has pushed through the development of industrial estates so that they grow from growth, from 89 industrial estates in 2016 to 128 industrial estates in 2020.

Furthermore, related to the creation of competent industrial sector experts, the Ministry of Industry initiated a vocational education and training program that carries a dual system concept.

“We have 9 Vocational Schools, 10 Polytechnics and 2 Community Academies with 18,743 students and when they graduate are ready to work to meet industrial needs,” said the Minister of Industry.

In addition, the Ministry of Industry also implements an education program equivalent to Diploma 1 in collaboration with industry.

“We routinely hold 3in1 education and training for training, certification, as well as job placement. In 2021, the training is targeted to train 69,399 people who will then be placed to work in industrial companies, “he said.

The Minister of Industry said that regarding the challenges to pressure on imported products, the Ministry of Industry has had a 35 percent import substitution program in collaboration with the Ministry of Trade, among others.

“The collaboration includes limited restrictions on certain commodities, setting port entry points for certain commodities, raising the Most Favored Nation (MNF) tariff, and increasing the implementation of trade remedies,” said the Minister of Industry.

In an effort to encourage the strengthening of the IKM sector, the Ministry of Industry will strengthen the digital platform for IKM players through the Smart Sentra, Smart Material Center, Smart Packaging Center and Smart IKM programs.

“Furthermore, in relation to logistical and data problems, we will strengthen SIINas, which currently contains 18,522 industrial company accounts, 134 industrial estate accounts and 11,918 service company accounts,” said the Minister of Industry.

Source: https://liputan6.com

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