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ECONOMIC GROWTH MOMENTUM: The government is asked to encourage the manufacturing sector

Illustration of electronic manufacturing industry. (Photo: telegraph.co.uk)

Illustration of electronic manufacturing industry. (Photo: telegraph.co.uk)

Thejakartatimes – The government is asked to encourage the manufacturing sector to take advantage of the momentum of global economic recovery.

University of Indonesia (UI) lecturer Chatib Basri said that improving the world economy and the US economy will only have a big impact for a country with a strong manufacturing sector.

Examples of countries in Asean whose economy grew high after the world and US economies showed improvement in the second half, namely Thailand, Malaysia, Singapore, and Vietnam. Meanwhile, Indonesia should be satisfied with economic growth in the range of 5%.

“So that’s why, Indonesia based is not manufacturing,” Chatib said when met at the launch of Indonesia Bureau of Economic Research (IBER), Friday (26/1).

If Indonesia wants to grow higher amid the momentum of economic improvement, Chatib said the government should again boost the manufacturing sector. However, such effort takes time. Meanwhile, global manufacturing industry competition is very tight.

In the past, Indonesia was easy to compete with other countries through cheap labor wages. Today, the value of the national minimum wage is very high when compared to the Bangladeshi demands. “Bangladesh is one-third compared to Indonesia,” said Chatib who served as finance minister in the era of SBY.

If he wants to compete, he insists Indonesia should encourage semiskilled manufacturing. This step, continued Chatib, can only be assisted by training programs or training / on the job training. If you only rely on the Training Center (BLK), the budget will not be enough and the training tools will not match the needs of the industry in the field.

“The solution is actually to ask for training his private sector is doing,” he added.

To encourage the private sector’s passion for training, the government can offer incentives. One of them is the double deduction incentive of taxes paid by the private sector.

According to him, this incentive has been done. But if the tax cuts can be bigger, he believes the private sector would be willing to empower its human resources.

In this way, the company can also obtain HR according to the required criteria. “Instead of being prepared by BLK, it is not suitable, then it is trained again and the private sector has to shell out again,” said Chatib. (Thejakartatimes/EOS/Source: Bisnis)

ECONOMIC GROWTH MOMENTUM: The government is asked to encourage the manufacturing sector Reviewed by on . [caption id="attachment_20040" align="alignleft" width="300"] Illustration of electronic manufacturing industry. (Photo: telegraph.co.uk)[/caption] Thejakartati [caption id="attachment_20040" align="alignleft" width="300"] Illustration of electronic manufacturing industry. (Photo: telegraph.co.uk)[/caption] Thejakartati Rating: 0
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