REPUBLIKA.CO.ID, JAKARTA - The industry ministry said only 30 percent of the country's industries are ready to compete in the ASEAN free market in 2015.

Secretary of the directorate general of manufacturing industry Setio Hadi said the country's industry was less competitive mainly because the industry still depends much on imports for basic materials. It would be difficult to accelerate industrial growth when most of the basic materials have to be imported, Hadi said on Friday.

"The country's metal, pharmaceutical, petrochemical industries and other major industries still rely on imports for basic materials," he cited.

Deficit in trade balance was also attributable partly to large import of basic materials, he said.

He said the coming government should start accelerate development of basic industry especially in petrochemical and basic metal sectors. The contribution of the manufacturing industry to the country's economic growth has been on the decline since 2004. In 2013 the industrial sector contributed 23 percent to the country's gross domestic products.

"This year the manufacturing industry is expected to grow 6-8 percent," Hadi said.

In order to grow to become an industrialized country, the contribution of the manufacturing industry needs to be increased to 40 percent, he added. He said ASEAN free market in 2015 would open an opportunity for competitive industries such as textile industry. 

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