Minister Saleh Calls for National Industries Development

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  • TEMPO.CO, Jakarta Industry Minister Saleh Husin has urged all authorities to cooperate to build the nation's industries to facilitate them to compete globally.

    "All sides must work in tandem to develop the country's industries so that they advance," the minister said on Saturday.

    With the 70th anniversary of Indonesia's independence (on August 17) approaching, Husin added, the development of national industries continues to head in the right direction.

    "Sometimes, national industries witness a downward trend, but it is not too significant," he remarked.

    Therefore, he assured the people to not worry about the ASEANEconomic Community (AEC), which will commence at the end of this year.

    The minister believes that the AEC, where there will be free trade and flow of goods, services and human resources among member states of the ASEAN, will not have negative impacts on national industries.

    "I do not think we need to worry about the AEC. Our national industries must be able to compete (within the ASEAN region)," he stressed.

    The AEC will commence in December 2015. Any country part of theASEAN will be able to sell goods easily to their fellow member nations.

    In addition, the AEC will not only allow free flow of trade but that of professional workers such as doctors, lawyers, accountants, journalists and others, as well.

    Husin recently stated that the policy on domestic content level was a strategic move to encourage industrial and infrastructural development.

    "This is our country. It should be developed with our own capital goods because we are capable of doing it," Husin had affirmed on July 8.

    The use of domestic products in government spending can support and strengthen the manufacturing industry.

    Furthermore, capital expenditure on all state-owned enterprises in 2015 has reached Rp300 trillion.

    "This is Indonesia's money. We must implement policies on the use of our own funds to support national development programs and to motivatedomestic industries," Husin emphasized.

    Moreover, the minister pointed out that of the 2015 state budget funds, Rp81.3 trillion was allocated for the Ministry of Public Works and PublicHousing, while Rp44.9 trillion was set aside for the Ministry of Transportation.

    Using the allocated amount, the Ministry of Transportation has built roads stretching over 143 kilometers and railway lines 265 kilometers long, besides procuring 48 locomotives.

    Also, the national program to construct power plants, with a combined capacity to generate 35,000 megawatts of energy, by 2019 will be supported by the domestic capital goods industry, Husin affirmed.

    According to Chairman of the Indonesian Engineers Association Bobby Gafur Umar, the policy to increase local content is important and strategic to encourage the domestic industry.

    "The benefits and added value that will be obtained will be greater," Umar remarked.