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Increasing Industrial Competitiveness Plays an Important Role in the National Economy

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The government through the Ministry of Industry has established a vision for Golden Indonesia 2045. This vision is one of the most strategic steps in realizing industrial downstreaming. The Ministry of Industry continues to strive to increase the competitiveness of industry, especially the processing industry, with the aim of growing the national economy which can be realized by all parties. The government has also committed to contributing quickly to support industry players.

In line with the efforts made by the Government to increase industrial competitiveness, it is recorded that the national processing industry is able to grow by 4.64% (yoy) in 2023 and become one of the major contributors to national economic growth with a  share  reaching 18.67% (yoy). to GDP in 2023.

Head of the Industrial Services Standardization and Policy Agency (BSKJI) of the Ministry of Industry, Andi Rizaldi, said that increasing industrial competitiveness has a role in improving Indonesia’s economic performance. According to him, in an effort to leverage industrial competitiveness, the role of the Government, especially support from the Ministry of Industry, is very important, including industrial services. Industrial services will provide great added value apart from manufacturing, and play an important role in the development of the industrial sector.

Andi added that these industrial services include providing support in the form of certification, testing, consultation, mentoring, increasing HR competency, maintenance services, engineering services, conformity assessment services, and industrial services that contribute to increasing industrial output.

Apart from that, the Ministry of Industry through the Technical Implementation Unit (UPT) under the guidance of BSKJI continues to innovate and improve the quality of industrial services. In order to improve managerial quality and service performance, the BSKJI Work Unit continues to be encouraged to transform into a Public Service Agency (BLU), one of which is the Yogyakarta Center for Standardization and Services for the Leather, Rubber and Plastic Industry (BBSPJIKKP) which has transformed into a BLU. This marks the achievement of  a milestone  towards providing industrial services with excellent service and supporting industrial competitiveness.

Meanwhile, Head of BBSPJIKKP Yogyakarta, Hagung Eko Pawoko said that in an effort to support industrial competitiveness, BBSPJIKKP continues to develop its services so that it can keep up with developments in the demands of the industrial world. He said that currently BBSPJIKKP services include 13 types of services, namely testing, calibration, certification, technical guidance or consultation, professional certification, validation or verification of Green House Gas (GHG) and Domestic Component Level (TKDN), inspection, mentoring, proficiency testing, technology audits, leather and rubber miniplants, and other technical services.

These services are good news for all industrial players and are concrete evidence of the Ministry of Industry in meeting industrial development needs in realizing an independent, competitive and advanced industry as mandated in the Law.

The Ministry of Industry is also holding the  Startup4Industry program  which brings together entrepreneurs with startups supported by the Ministry of Industry, with the aim of increasing competitiveness through the use of technology. This collaboration is important to increase the competitiveness of domestic industry. According to him, this program is a commitment made by the Government to mitigate global dynamics and create an inclusive and sustainable industry by prioritizing innovation.

The Director General of Small, Medium and Miscellaneous Industries (IKMA) of the Ministry of Industry, Reni Yanita, with this program is expected to be able to create new value in a series of company business processes such as production lines, storage ( warehouse ), marketing, logistics and transportation, waste processing, efficiency energy, as well as company management. Apart from that, this program also aims to bring together industry leaders, startup leaders, and other stakeholders to exchange ideas, share insights, and establish partnerships that produce added value for each party.

On the other hand, the Head of the Department of Manpower and Industry, Ferry Erviyan Rinaldy, said that in realizing the Government’s goals in the industrial sector, the Padang City Government through the Department of Manpower and Industry is very aggressive in supporting the development of industry by increasing standards in the operation and processing of industrial materials. His party always monitors in order to improve operational standards for production methods and equipment in production.

This is proven by the inclusion of Rendang Zara as a category (Kaizen) which is a change in producing true industrial results. He also emphasized that industrial players, especially Small and Medium Industries (IKM), really need full support from the Government in their self-development efforts.

In improving the current economic structure, the Government continues to strive to maintain the trade balance in the industrial sector. One strategy is to reduce the trade balance deficit by facilitating the provision of incentives for export-oriented industries and facilitating legality through the Verification and Legality System. Therefore, the Government expects support from all elements of society in order to maintain economic stability by increasing competitiveness in the industrial sector.

)* The author is an Economic Observer at the Nusa Bangsa Institute.

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