Key Remarks Minister of Industry of the Republic of Indonesia European Union- Indonesia Business Dialogue (EIBD) Fairmont Jakarta 28 November 2017
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1 Key Remarks Minister of Industry of the Republic of Indonesia European Union- Indonesia Business Dialogue (EIBD) Fairmont Jakarta 28 November 2017
2 HIGH GROWTH INDUSTRY Q Non Oil and Gas Industry Growth Q ,49% 10,6% 5,63% Basic Metals Industry Transportation Industry Indonesia Economic Growth Q ,06% 9,49% Food an Beverages Industry 6,35% Machinery Industry
3 The Performance of the Manufacturing Sector of Developing Countries in the World Within the last 2 decades, manufacturing sector in developing countries show outstanding performance. It is seen from the increasing position of the countries in the top 20 manufacturing value-added countries in the world. Source : United Nations Industrial Development Organization, 2017 It is shown on the table that China shows rapid progress in manufacturing sector and has topped the world ranking since Meanwhile, Indonesia as fellow developing country had slowly risen from 18th place in 1990 to the 11th in
4 The Contribution of Manufacturing Sector toward GDP Following are 15 world's best manufacturing performance countries in The average contribution toward GDP is 17%. Policies in a country in promoting manufacturing sector is one of the influencial factors. Percentage of Manufacturing Sector to GDP (%) Republic of Korea China Germany Indonesia Mexico Japan India Italy Spain United States Russian Federation Brazil France Canada United Kingdom Source : United Nations Statistics Division, The contribution of manufacturing sector toward GDP in the countries are varied, from 10% (United Kingdom) to 29% (South Korea). China is in the 2nd place (27%) while Indonesia is in 4th place with 22% contribution of manufacturing sector toward GDP 4
5 Pilar Global CompeGGveness Index Posisi Posisi InsGtuGons Infrastructure Macroeconomic environment Health and primary educagon Higher educagon and training Goods market efficiency Labor market efficiency Financial market development Technological readiness Market size 10 9 Business sophisgcagon InnovaGon
6 Ease of Doing Bussiness Indonesia Ease of Doing Business * Jokowi-JK Period *Year EODB Indonesia Thailand Vietnam Philippines Malaysia Brunei
7 7
8 DEVELOPMENT OF NEW INDUSTRIAL ESTATE ( ) KI Ladong, NAD (Agro) 65,6 Ha KEK Lhokseumawe (Petrokimia) Ha KI/KEK Sei Mangkei (CPO & Karet) 1.933,8 Ha KI Dumai (Hilirisasi CPO) Ha KI Landak, Kalbar (Feronikel) Ha KI Ketapang, Kalbar (Aluminium) Ha KEK Maloy (Agro, Logistik) 557 Ha KI/KEK Bitung (Agro, Logistik) 534 Ha KI/KEK Palu (Agro) Ha KI Morowali (Feronikel) Ha KI Tanjung Buton (Hilirisasi CPO, Agro) Ha KI Konawe (Feronikel) Ha KI Wilmar Serang (Aneka industri) 760 Ha KI Kendal (Aneka Industri) Ha KI JIIPE Gresik (Industri Manufactur terpadu dengan Pelabuhan) Ha KI Bantaeng, Sulsel (Feronikel) Ha 8
9 The manufacturing sector is very complex, there are 5 segments in the manufacturing sector in which there are related industries. With this grouping the needs and characteristics of each industry will be easy to see. Group Global Innovation for Local Market Energy/Resource Intensive Commodities Regional Processing Global Technologies/ Innovators Labor-Intensive Tradables Chemicals Motor vehicles Industry Other transport equipment electrical machinery Machinery, equipment, appliances Wood products Refined petroleum, coke, nuclear Paper and pulp Mineral-based products Basic metals Rubber and plastics products Fabricated metal products Food, beverage and tobacco Printing and publishing Computers and office machinery Semiconductors and electronics Medical, precision and optical Textiles, apparel, leather Furniture, jewelry, toys, other R&D Labour Capital Keterangan: % Nilai Tambah Sektor Manufaktur Global High Upper-Middle Lower-Middle Low Energy Trade Value Sumber: IHS Global Insight; OECD; Annual Survey of Manufacturers (ASM) 2013; The global innovation segment for the domestic market has added value to the world's largest manufacturing sector by 35% (2013). From the table above can be seen that all industries in this segment has a high level of R & D intensity. Labor-intensive commodities are at the bottom (7%), due to rapid technological advances, such as automation in the manufacturing sector. 9
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