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Industrialization should be prime driver of Indonesia’s economy: Committee
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Optimistic – National Mandate Party politician Sutrisno Bachir (left) takes an oath during his inauguration as chairman of the National Economic and Industry Committee at the State Palace on Jan. 20. He said on Friday that industrialization should be the locomotive pulling Indonesia’s economic growth. (Tempo/Subekti)
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he National Economic and Industry Committee (KEIN) has said industrialization should be the locomotive pulling Indonesia’s economic growth.
KEIN chairman Sutrisno Bachir said Indonesia could no longer rely on raw commodity exports to boost the country’s economic growth amid a sluggish global economy.
"We are in a difficult situation. We should tighten our belts and be smart in dealing with this situation," he said at the State Palace on Friday.
Sutrisno said the newly established committee was set to compose a re-industrialization roadmap as part of its effort to analyze the government's plan to boost domestic manufacturing.
"KEIN will actively provide strategic input in the fields of the economy and industry, not only in the form of papers, but also directly to all communities and regions," he said.
Citing an example, Sutrisno said KEIN would monitor the industrialization and new industry projects that were currently under construction in several regions.
"We aim to boost industrialization in the country, which is now depressed. That’s our main program. We realize we will miss a lot of opportunities if we only export raw commodities amid the global economic slowdown," said Sutrisno, who was formerly chairman of the National Mandate Party’s (PAN) advisory council.
He said KEIN would cooperate with relevant ministries to strengthen the role of industry in Indonesia’s economic growth, including by encouraging the country's citizens to use domestic products instead of imported goods.
"We should be able to follow other countries such as Korea, Japan and India, which are praised for their spirit of nationalism regarding their domestic products," he said.
KEIN secretary Putri K. Wardhani said the ongoing sluggish global economy had led to decreasing exports and increases in imports. To change this situation, Indonesia must increase the use of domestic products.
She said the committee had requested recommendations from industrialization architects such as Emil Salim and BJ Habibie to synchronize Indonesia’s past industrialization patterns with the current economic situation.
"They both said that to reach double-digit economic growth, industries must be the locomotive of the Indonesian economy and this must be supported by the finance and trade sectors," she said. (ebf)
