MINISTRY OF INDUSTRY OF THE REPUBLIC OF INDONESIA KEYNOTE SPEECH. In The 4 th National Responsible Care and The 2 nd responsible Care Award 2007

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1 MINISTRY OF INDUSTRY OF THE REPUBLIC OF INDONESIA KEYNOTE SPEECH In The 4 th National Responsible Care and The 2 nd responsible Care Award 2007 With Theme: RESPONSIBLE CARE SUPPORTING CHEMICAL INDUSTRY TO SUSTAINABLE GROWTH Jakarta November 28, 2007

2 MINISTRY OF INDUSTRY OF THE REPUBLIC OF INDONESIA In The 4 th National Responsible Care and The 2 nd responsible Care Award 2007 With Theme: RESPONSIBLE CARE SUPPORTING CHEMICAL INDUSTRY TO SUSTAINABLE GROWTH Jakarta November 28, 2007 Assalamu alaikum Wr.Wb First of all, praise to Alloh SWT, by His bless we are able to meet together in this place to witness the closing of The 4 th National Responsible Care program and granting of The 2 nd Responsible Care Award I would like express our thank and appreciation to all parties for their work hard for smooth and well implementation of this program. We appreciate and welcome enthusiastically to organizing of this program with theme Responsible Care Supporting Chemical Industry to Sustainable Growth. By this activity we have opportunity to convey our ideas relating to the assessment to what extent the effectiveness of implementation of Responsible Care in every industry. 1

3 Responsible care is a voluntary responsibility of the global chemical industry by giving proof to public about the continuous effort to maintain and improve the rules of health, safety and environment in entire activities. The Key Performance Indicator (KPI) intended to asses to what extent the effectiveness of implementation of RESPONSIBLE CARE in every industry or company being the member of KN-RCI indicates the real contribution to the care about Sustainable Development in Indonesia globally as well as support the Sustainable Business Development. The Ministry of Industry not only acknowledges the existence of Responsible Care and the KN-RCI forum, but farther considers the Responsible Care supporting as one of factors in increasing the performance of chemical industries and simultaneously placing KN-RCI as the Government s counterpart in development, building and improvement of industry, especially in the health, safety and environment management. This condition of course must be able to be maintained and developed further in the future. To encourage the national industry competitiveness, the Ministry of Industry has stipulated Industrial Policy focused on the development of the national industry competitiveness on cluster basis and Region Core Competency. Development of 2

4 Industry Cluster and Region Core Competency basically integrate 3 (three) strategic competitiveness components namely (1) Resources Based Strategy with main product integrating the core competency. 2) Market Based Strategy tries to integrate all activities along the value chain; and 3) Institutional Approach, to develop competitiveness model from the real experience at field or at operational level. Since the problem encountered in the improvement in competitiveness is very complex, then the industrial activities/ programs both in central and regional must be carried out synergically through two approaches. First, top down approach, namely industrial development planned from central (by-design) by taking into account priority determined nationally and followed by regional participation. This national industrial development policy has been outlined namely be selection of 32 priority industries, by cluster development approach. Second, bottom-up approach, namely determination of the region core competency constituting the region s mainstay, where the central takes part in developing its development to allow the region to have competitiveness according to its core competency. Cluster approach can be applied to every level of industrial process or scale from economic activities of a region. Based on experience of several countries using the cluster concept, there is positive correlation that existence of a strong and dynamic cluster will strengthen the competitiveness platform, 3

5 increase the attractiveness for the investor as well as develop job opportunity. To support the increase in industrial sector, there should be many policies that are able to provide significant impact on the increase in competitiveness, with priority on: 1. Improvement in Investment and Business Climate through strengthening of investment service institution by carrying out programs as follows: a. Revising Investment Act and relavat regulations in order to be more attractive and provide legal assurance to the investment activities. b. Implementing de-bureaucracy and de-regulation in the export-import and customs administration process. c. Development of Bonded Zone Role. d. Smuggling Eradication e. Provision tax incentive for investment f. Empowerment and Facilitation for Micro-Medium Business (UKM) through increase in good partnership in marketing, technology and capital sectors. 2. Increase in manufacturing industry competitiveness such as increase in use of domestic product. 3. Development of Agro Based Industry to strengthen Region Competitiveness. 4. Development of Export Oriented Industry. 4

6 5. Utilizing infrastructure projects to strengthen and develop industry sector. Last but not the least, congratulate the implementation of The 4 th National Responsible Care and The 2 nd Responsible Care Award 2007 that has been implemented smoothly as planned as well as providing benefits for all parties. And this chance I would like to express our thank and the highest appreciation to the industries successfully gaining Responsible Care Award 2007 and KN-RCI for its active role in supporting the chemical industry policy as well as may we able improve and develop the cooperation already built. Wassalamu alaikum Wr.Wb MINISTER OF INDUSTRY Signed FAHMI IDRIS 5