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Not Just Wrong Trade Minister, Decrease in Export Reflecting Weak Industrialization

Ilustration. (by: http://www.sq.com.ua/)

Ilustration. (by: http://www.sq.com.ua/)

Thejakartatimes – Entrepreneurs judge, jebloknya national export performance 2017 on neighboring countries can not fully delegated to the Minister of Commerce (Minister) Engartiarso Lukito. The Association of Young Indonesian Entrepreneurs (Hipmi) assesses that the weakening of performance from neighboring countries is caused by the program of industrilisasi in some ministries is not running at all.

“Mr Mendag is not entirely blamed. Because the industrilisasi which is the responsibility in some ministries is not running at all, just make it difficult for investors, “said Chairman of BPP Hipmi Bahlil Lahadalia in Jakarta today.

Bahlil gives an example in the fisheries and marine sector. This sector is the responsibility of the Ministry of Marine Affairs and Fisheries (KKP). The road map of the fishery industry is not yet clear. Bahlil said the Indonesian fishery industry should be a mainstay of national exports. “But now we are far behind from Vietnam. Though the sea country is not as wide as Indonesia. Throughout 2017, it can export fish and processed products worth US $ 8.3 billion while Indonesia is only half, “he said.

The same thing happened in the Ministry of Energy and Mineral Resources (ESDM). “In this ministry, every month’s rules change to make electricity investment weakening so that the industrial electricity supply is deficit. Existing electricity is absorbed by household consumption. Find electricity to wake up coldstorage fish is now very difficult because the electricity runs out to pursue the ratio of electrification, “he said.

Not only in both ministries, in other ministries also the enthusiasm of entrepreneurs is still happening everywhere. Bahlil said that in fact besides industrilisasi and increasing the export of processed goods, the government can also encourage increased production of agricultural commodities, plantations for export. However, the increased production of these commodities must be done by the Ministry of Industry, Ministry of Agriculture, and the Ministry of Energy and Mineral Resources.

Bahlil said that the President’s warning is aimed at all relevant ministers, not just for the Minister of Trade. “The Minister of Trade does not have full authority in the production and industrial areas. The Minister of Trade only helps other ministries by issuing pro trade policies to the domestic industry, “Bahlil concluded.

Bahlil reminded that the competitiveness of national industry is very weak. The condition is weakened by a less conducive investment climate caused by chaotic new regulations at the ministry level as well as in local government. In fact, Indonesia has had the momentum to increase its direct investment after reaching the investment grade status last year. “The ministers are not in the spirit of the package of deregulation of the President. I also wonder why, “Bahlil said.

Bahlil reminded that the export performance of several neighboring countries in Asean, because these countries make systematic and structured investment climate improvement. “So that investors there are not made difficult, but served in plenary,” said Bahlil. He said, industrilisasi is the main support of national export performance. Therefore, the government needs to be alert with the threat of de-industrialization by continuing to push the downstream program in all business sectors.

Previously, the President reminded the performance of Indonesia, which is still inferior to the neighboring countries in ASEAN. The president said that Indonesia’s exports in 2017, which reached US $ 145 billion, are still inferior to Thailand which reached US $ 231 billion, Malaysia US $ 184 billion and Vietnam which reached US $ 160 billion. “A country of this size is losing to Thailand with enormous resources and human resources, we are losing.There is something wrong and something must be changed,” said Jokowi, during the opening speech of the Ministry of Trade 2018 at the State Palace here on Wednesday, January 31, 2018. (Thejakartatimes/EOS)

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