Development Of Manufacturing Industrial Estates To Drive Economic Growth

Illustration of production activity in the food industry. (Photo: Antara)

JAKARTA - Chairman of Commission VII DPR RI Sugeng Suparwoto said the development of the manufacturing industrial area could encourage the acceleration of economic growth in Indonesia.

"In addition to absorbing labor, capital, technology, and so on, the expansion of industrial estates must also pay attention to how the manufacturing industries are pushed out so that their development is much better in terms of the composition of gross domestic product (GDP)," said Sugeng in the RDP. Commission VII of the DPR RI with the Head of the Standardization and Industrial Services Policy Agency (BSKJI) of the Ministry of Industry and the Director-General of Resilience, Territorial and International Industrial Access (Dirjen KPAII) at Nusantara I Building, Senayan, Jakarta, Thursday 19 May.

Sugeng feels grateful that Indonesia's foreign exchange reserves have increased over the last six months.

However, in terms of the composition of commodities, the industry is considered not to have increased massively.

On the other hand, in a number of notes he received, the manufacturing industry sector declined in the composition of gross domestic product (GDP).

"How vulnerable, commodity exports are foreign exchange reserves that once touched 141 billion US dollars, in two weeks it fell around 3 billion US dollars because the government banned the export of crude palm oil (CPO). This is also how proportionally, that commodities dominate, there are also vulnerable points," he said.

Meanwhile, a member of Commission VII DPR RI, Nurhasan Zaidi, emphasized that the state must be present to respond more quickly to the development and growth of the industry which is getting faster day by day.

According to him, industrial growth is now growing extraordinarily fast, so the state must be able to balance it so that it is not too late in anticipating it.

"Obviously the industrial era has grown tremendously. Industry often grows faster than what we design, so yes indeed, people trade, and business people think very quickly. We haven't set the regulations, they are already faster. That's also called business people, ( If) you are not a business person, it is too late to anticipate it," he said.

Nurhasan added that one of the challenges facing industrial development today is the transition from the agricultural to the industrial era.

This transition, he continued, has influenced the lifestyle changes of an area.

For this reason, it does not only require careful planning in dealing with the transition, but good implementation and synergy with companies and local governments.

"Sometimes industrial companies in the area are also difficult to get synergies with, don't want to, sir. So the father (Head of BSKJI and Director General of KPAII) on paper is good, but the implementation has not yet, not to mention the problem of industrial areas which are green areas, You say the industry is green, but in fact you want to do whatever you want, sir, matters such as licensing issues, waste issues, what kind of problem is this, who's in control, now that's another matter," he concluded.