REPUBLIKA.CO.ID, JAKARTA – Indonesia consumed more than it could produce, but the consumption itself could drive economy positively, the CEO of General Electric for Indonesia, Handry Satriago, said before young local-foreign diplomats in the event ‘Indonesian Economy Outlook 2012’ held by Indonesian Ministry for Foreign Affairs.
“The production capability of Indonesia is not high enough and mostly happen in finance sector, real sector is not competitive enough,” he said. Yet, with the economic growth in 6.5 percent, the macro economy of Indonesia is good for business.
The Global Competitiveness Index shows that Indonesia ranks 44th among 139 countries. Given that Indonesia was not a new comer in globalization, the number was disappointing, he said. Indonesia involved in the globalization since hundreds years ago when people came to Indonesia to buy spices and other natural resources.
Meanwhile, many countries that do not have natural resources and less population can be competitive. Satriago mentioned several things that should be done in order to be a part of globalization. “To play globally, you need to globalize the brain,” the man who is the youngest CEO in GE said. People should think globally.
Also, local capability should be enhanced as the more the world become global, the more the local capability becomes more important. The biggest problem in Indonesia is local company. “The local capability is not strong enough,” he said.
Indonesia also lacks of sophisticated demand. He compared Indonesia to Japan. He said, Japanese loved everything to be automatic. Then the companies try to produce what people demand. While in Indonesia, the demand has not yet developed. “It should be driven by the government,” he said.
This event was aimed to give the information about Indonesia to the young diplomats, Azis Nur Wahyudi, the Functional Official of Directorate of Public Diplomacy in the Ministry for Foreign Affairs, said on Thursday night. The event could also create a network among the diplomats. “The event hopefully can draw more investment to Indonesia,” he said.
General Electric Company is an American multinational conglomerate. The company operates through four segments: Energy, Technology Infrastructure, Capital Finance and Consumer & Industrial.
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