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About Industry Technogy at Indonesia
About Industry Technogy at Indonesia
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Industry, which often get attention in Indonesia is the manufacturing industry because the
amount of the industry's most dominant than the industry trade as well as the service industry.
Therefore the industry is expected to be one of the sources of financing in the government. In
addition, the manufacturing industry also absorb a lot of manpower so that the unemployment
rate in Indonesia is also diminishing. However, the economy that is global to the manufacturing
industry are forced to compete with other industries abroad without any protection from the
government. On the one hand it is advantageous for the competition, the industry in Indonesia
will be more creative in product innovation. But in the other hand, competition may harm these
industries, which has limited resources.
Less of want the effort has implications for the decline in economic competitiveness,
especially for other sectors the industry as the field of employment opportunities and the
manufacturing sector which is one of the motor for economic growth. According to the World
Economic Forum (WEF) in 2004, the position of Indonesia's competitiveness is still in the
second half of 104 countries studied. The position really has risen from the 72nd in the previous
year. As for according to the International Institute for Management Development (IMD) which
also published World Competitiveness Report 2004, the position of Indonesia was ranked 58 of
60 countries studied. And from 2000, the competitiveness of the Indonesian economy in a row
down from his position on 43 in 2000, the order of the 46 in 2001, the 47th in 2002, and the
order of the 57th in 2003. Indonesia's ranking is on Argentina (59) and Venezuela (60).
To overcome the problems, the industry in Indonesia will inevitably have to improve the
ability of bersaingnya in order not to lose competitiveness with the foreign, so it takes the
strategies and policy development of manufacturing industry. In addition analysis of industry and
competition is also needed so that the manufacturing industry can still survive in the midst of the
severity of global competition. The trick is to do all of those innovations of the product based on
creative ideas that they have. With regard to competition, there are a number of problems faced
by, among others : (i) how the manufacturing industry in Indonesia in the face of global
competition is becoming increasingly tight, (ii) how the profile of innovations in manufacturing
industry in Indonesia in response to very competitive. Based on the issue on the purpose of
writing a scientific article of the analyzing how the manufacturing industry in the face of global
competition is becoming increasingly tight and analyzing how the profile of innovations in
manufacturing industry in response to very competitive.
Within the span of time, the United Nations Industrial Development Organization
(UNIDO) to develop indicators Competitiveness Industrial Performance (CIP) which is then
applied to measure the competitiveness of the manufacturing industry on especially 93 countries
in the period 1980 to 2000. In Industrial Development Report 2004, the size of the CIP is
comprised of four (4) the variables, namely : (a) the value added industry manufacture per capita,
(b) the export manufacturing industry per capita, (c) inscentitas industrialization, as measured
from the contribution the manufacturing industry in GDP and the contribution of the
manufacturing industry with middle and high on the manufacturing industry, and (d) the quality
of export, as measured from the export manufacturing in total exports and the contribution of
manufacturing with middle and high in the value of export manufacturing industry.
A. Corruption and public service a bad result in the high cost of overhead.
In the hands of the micro, to borrow a UNIDO, 4 (four) the main factors that need to be
considered in improving the performance of the competitiveness of the manufacturing industry is
: (a) the (skill) human resources, (b) the control and application of technology, (c) the investment
run well as the potential of technological advancement and expansion of the export market, and
(d) the capacity of the infrastructure (including the infrastructure for technology development).
The four factors above is an integral part of a variety of policies and programs formulated in the
topic related.
With increasingly tight competition among global and more rapidly and specifically the
development of technology, the quality of industrial policy is a better and more targeted.
Therefore, the formulation of strategic and policy development of manufacturing industry on the
sub-sektor. In accordance with the problems of the urgent challenge as well as the limitations of
resources, priority development sub-sector the industry in the next five years set on sub-sector
the manufacturing industry which one or more criteria as follows : (1) to absorb a lot of work ;
(2) to meet the basic needs in the country ; (3) has the potential for the development of exports ;
and (4) the natural resources in the country. measures of intervention on the sub-sektor still is
functional, as outlined in paragraphs before.
The development of network production was approached by using unit analysis of
clusters of the industry. As for each sub-sektor the industry, handling the issue is given priority
on efforts to : (1) revitalize the performance sub-sektor the industry, especially utilities installed
capacity up to 80 percent ; (2) strengthen the industry, including the empowerment of resources
industry ; (3) to expand the production, both by encouraging the creation of new investment and
encourage the development of industrial scale kecil-menengah ; as well as (4) to maintain and if
possible and improve its competitiveness to in the global market.
In general, the structure of the manufacturing industry in Indonesia was met by the level
of concentration which is quite high. It is evident from the level of the concentration of
manufacturing industry in 2006 (Table 3.3), where there are about 60 % of the industry (based on
KKI 5 digits) who have concentration levels in the top 75 %. In addition, the obstacles getting
into the industry (entry barrier) to the industry in Indonesia is also quite high. It is based on the
Minimum Value among Scale (MES) to eight of the industry in which 86 % have a MES greater
than 10 % (Table 3.4). 8 According to Alistair (2004), MES a greater than 10 % of the entrance
to the high on an industry, where on a scale of the economy is growing increasingly difficult for
the new company to get into the industry.
Meanwhile, based on calculations that was carried out against PCM the entire industry, it
appears that the PCM correlated is strong enough on the consumer price index inflation for
manufacturing which is about 80 % (The graph 3.4). 10 It goes to show that the role of the
behavior of a producer price quite dominant in explaining the movement of the price at the
consumers. The role of consumer price index of manufacturing in consumer price index total also
is big enough, given the size of the weight of goods manufacturing in the consumer price index.
The purpose of this program is to improve product competitiveness, to facilitate the flow
of goods and services, and be a means to protect industry and consumers in the country, as well
as developing cooperation between countries within the framework of mutual recognition
(mutual recoqnition) a bilateral and multilateral. The program is an increase in the preparation
and implementation of the SNI, increasing institutional capacity of the standardization, and an
increase in the standardization through bilateral and multilateral, especially to the destination
country exports.
The point is directed to encourage and facilitate the expansion of (state) and
strengthening (intensification) a variety of economic activity sectors of production and
distribution is to improve the quality of, encourage productivity and efficiency in the production
system, which include : (1) the development of institutional infrastructure the standardization
through research, assessment, and development in the field of measurement, standardization,
testing and quality ; (2), optimizing the utilization of facilities and infrastructure, R&D,
recognition of the quality of the product (SNI/ISO) and fiscal incentives are careful in the
activities of production are encouraging the growth of the climate innovation (solid technology),
(3) develop a pattern of incentives in the form of partnership the R & D and the industry, the
socialization of the quality standards against IKM, insurance technology corporations based
businesses, according to the R & D ;(4) to develop cooperation between the standardization
at the regional and international (ACCSQ, APEC, WTO) ; (5) the development of information
systems standardization ; (6) to play an active role in various forums and organizations of the
standardization of international, among others : the ISO, IEC,'s CAC, PAC, APLAC, ILAC, IAF,
BIPM, and so on ; and (7) to provide the facilities and infrastructure operational institutions that
deal with the activities of the development of standardization.
The manufacturing industry are the most dominant in Indonesia than with the trade and
industry services. However, in line with the development of the times, the manufacturing
industry in Indonesia must now faced and compete in the global very strict. In the face of the
increasingly fiercer competition among global manufacturing industry in Indonesia should have
the strategies and policy development of manufacturing industry.
The role of small and medium industries (including the RT). Priority development sub-
sector the industry in the next five years set on sub-sector the manufacturing industry which one
or more criteria as follows : (1) to absorb a lot of work ; (2) to meet the basic needs in the
country ; (3) has the potential for the development of exports ; and (4) the natural resources in
the country.
These things are done to enhance the competitiveness of manufacturing industry in
Indonesia to the face of global competition is to create the development of small and medium
industries as well as creating and development the program to improve the ability of the
technology industry, the arrangement of the industry structure, capacity building infrastructure,
as well as optimizing administrative and incentive tax.