By: Surya Aria *)
Industrial sector’s contribution to national development over the years showed a significant contribution. Most of Indonesian products have been successful in the world market share. Position the contribution of manufacturing to GDP Indonesia has reached 18%. Food and beverage industry has achieved double-digit growth field of automotive machinery and electronics industry also experienced rapid growth above 20 percent. Based on the United Nations data, Indonesia has entered into 10 manufacturing country, overtaking Russia and the UK. Sritex now has 123 units of spinning mill. And to build a unit in need of at least Rp 400 billion.
The government has sought to promote the industry through increased productivity and fiscal policy. One result of the successful industry is the textile industry through the company Sritex Solo. Sritex now has 123 units of spinning mill. And to build a unit in need of at least Rp 400 billion. Garment factory and this unit has been successfully supplying the needs of Nato and Netherlands military uniforms. The Indonesian products worldwide is also generated from the aerospace industry (PTDI) and military equipment (PT. Pindad).
The increase in the manufacturing industry will have a positive impact on the Indonesian economy. Business climate will create more conducive os the investors will be interested to invest in Indonesia. In addition, the manufacturing industry would require support from upstream to downstream. Surely this will create new jobs so it will also be able to reduce unemployment in Indonesia.
The manufacturing sector is also associated with a higher contribution of growth when compared to the traditional sectors because of their relative size and coherence in all sectors of the economy. The second advantage of the rise of Indonesian manufacturing industry is more decent job. The World Bank wrote that the level of productivity of the manufacturing sector is relatively higher cause 69 percent of jobs in the manufacturing sector in Indonesia is the formal sector with high wages. Therefore, the Government of Indonesia should develop a manufacturing industry that can compete internationally for increasing Indonesian economy.
*) CIDISS Contributor