Government Asked To Maintain Chemical Industry Sustainability

Illustration of the chemical industry (Photo: Antara)

JAKARTA - Chairman of the Indonesian Engineers Association Chemical Championship Agency (BKK-PII) Sripeni Inten Cahyani asked the government to better protect and revive the national existing industry, especially in strategic sectors such as chemicals and petrochemicals.

According to Sripeni, currently, short-term policies are needed to protect the existing industry so that it can survive and grow so as to avoid layoffs from employees which will have an impact on decreasing people's consumption capabilities.

"It is hoped that the government's support so that the existing industry can upgrade technology that is more efficient and environmentally friendly so as to increase its production competitiveness globally and increase its production capacity," Sripeni said quoting Antara.

He also highlighted the latent danger of imported practices that were left without control. In the long term, this not only erodes competitiveness, but also makes Indonesia more dependent on foreign products.

Therefore, the government's plan to increase the Anti-Dumping Import Duty (BMAD) for partially oriented Yrn-drawn textured products (POY-DTY) is considered the right step.

He stressed that strong local production will encourage industrial projects such as petrochemical factories and refineries to move up status from the planning stage or initial assessment (prometer) to commercial.

If it has reached that stage, the project will start to have a real impact on the economy through job creation, increasing exports, and reducing the trade balance deficit.

In parallel, the government is also encouraged to invite new investors who can strengthen the value chain of the national industry. This includes investment in the downstream sector of the palm oil, mineral and oil and gas-based chemical industry with the main aim of import substitution and producing added-valued products for the need for advanced industrial supply chains.

Sripeni also said that the Ministry of Industry (Kemenperin) had shown commitment by supporting illegal import control and encouraging the application of protection instruments such as safeguards and anti-dumping.

The administrative steps have also been taken by writing to the Coordinating Ministry for Economic Affairs so that these steps are implemented more effectively.

However, according to him, such support must be followed up with firm policies and cross-ministerial coordination so that the national industry does not only survive, but can grow and compete globally.

He hopes that all policy makers can work together in maintaining the sustainability of the national industry.

"If there is no partiality, then we will forever become a market, not a producer. This is a matter of sovereignty, not just the economy," he said.