REPUBLIKA.CO.ID, JAKARTA -- The government is focused on restoring the industry's role as the engine of Indonesia's economic growth, Coordinating Minister for Economic Affairs Darmin Nasution stated.

"The government should boost the industrial sector as it earns foreign exchange through exports," Nasution noted here on Tuesday.

The minister remarked that the industrial sector could absorb the labor force.

Nasution explained that there were three important characteristics of the industry. Firstly, the industry can absorb the workers in the labor-intensive, capital-intensive, knowledge-based, and high technology industries.

Secondly, the industry has high productivity, and thirdly, it can produce and meet the needs of other sectors.

The minister affirmed that the government's policy package had mobilized and restored the national industry.

"In fact, we design developments in the industrial area with investor-friendly facilities, including logistics areas and special economic zones," he pointed out.

Since the 1970s, the industrial sector had established the foundation for industrial and economic development of the society. At that time, the government had focused on import substitution.

"At that time, we built the industrial sector as the backbone of our economic development," the minister emphasized.

Until the 1980s, import substitution began to slow down. As a result, the government made a massive change in the policy.

In 1998-1999, a major crisis in Asia shook the industrial sector.

"Until now, we must acknowledge that the industrial sector has never fully recovered," Nasution emphasized.

Earlier, the government had released the tenth economic policy package aimed at boosting investment and protecting small and medium enterprises as well as cooperatives.

The government has increased 19 reserved business sectors for small and medium enterprises and cooperatives in the revision of Presidential Decree (Perpres) No. 39 in 2014 on List of Business Fields Closed and Business Fields Open with Conditions to Investment in the investment sector (Investment Negative List/DNI).

"The nineteen sectors comprise the activities of various business services and construction that use simple or medium technology and are valued at Rp10 billion,"

Nasution stated.

"In the previous DNI, foreign investors were required to have some 55 percent ownership in business areas such as pre-design and consulting services, architectural design services, and administrative services, and so on," the minister pointed out.

The government expanded the value of 39 reserved businesses in the SME sector from Rp1 billion to Rp50 billion.

The activities encompassed the type of construction service business, such as construction work for commercial buildings, health facilities, and others.

In addition, the government has simplified the business field as part of its efforts to expand the business activities of SMEs, the minister remarked.

Nineteen business services/construction were merged to form one type of business, the minister cited.

"Therefore, the reserved business sector for small and medium enterprises and cooperatives has been narrowed down to include 92 business fields," the minister stated.

Ikuti Whatsapp Channel Republika