Indonesia to Become Industrialized Country by 2035

KUTA ~

Indonesia is expected to become an industrialized country by 2035, with domestic industries contributing 29 percent to the country’s gross domestic product (GDP), an industry ministry official said.

“The development of industry is quite important for providing added values to products, enhancing jobs and improving the people’s welfare,” Secretary General of the Ministry of Industry Anshari Bukhari said during a discussion on the National Industrial Development Master Plan (RIPIN) here on Saturday.

He added that even though Indonesia was an agrarian country, the development of industry was badly needed to increase the added values of agricultural products so that job opportunities could be increased and the people’s prosperity could be improved.

“Advanced countries like the United States and Japan have consistently also developed their agriculture to meet the needs for food for their people,” he said.

But to become an advanced nation, they developed their industries so that now those who work in the agricultural sector in the United States account for only three percent, and only several percent in Japan.

Therefore, Anshari said that the development of industry should be given serious attention in the future. The government must be intensively involved, not only in the policy making sector but also in the development of facilities and infrastructures.

Thus far, many facilities and infrastructures needed by the people have been developed by private companies. “Ahead, the government should really play a role in the development of industry. Industrial development should not only be left to market mechanisms,” he added.

He said that the concept that the government should seriously be involved in industrial development was contained in Law No. 3/2014 on industrial development.

The law, which will be completed with six government regulations, five presidential decrees and 14 industrial ministerial decisions, regulates that the government should develop industrial zones whose development, so far, has been given over to private firms.

The government, based on the law, is also directed to develop roads, infrastructures, ports and energy.

The ministry of industry hoped that in 2035 the nation’s industrial infrastructures would become strong and have a highly competitive edge in the global market, based upon its innovation and technology.

Through the RIPIN, the ministry of industry set itself a target that in 2035 the rate of the country’s industrial growth would reach 9.03 percent, industrial contribution to the GDP set at 29.09 percent, non oil and gas export contributions at 78.39 percent, importation of raw materials would be cut by 20 percent from the present level of about 60-65 percent, and additional investment will be increased by as much as Rp2,800 trillion.

Further, in that year the number of workers to be absorbed is expected to reach 29.2 million people, higher than the 14.9 million in 2014.

“So, we hope that a total of 800 thousand workers will be absorbed every year in the industrial sector,” the secretary general said.

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