Sunday, November 28, 2010

Minister Wants End to RI`s Raw Material Exporting Era

Sunday, November 28, 2010

Bandung, West Java, Industry Minister MS Hidayat said Indonesia needs to stop being an exporter of raw materials so as to develop its own industries.

"It is my ambition to increase the volume of exports of goods other than raw materials. Our raw materials should be feedstock for our own industries," Hidayat said at the opening of an "Increasing Domestic Product Use" Expo 2010 here on Saturday.

He said Indonesia had so far exported a lot of raw materials to various countries such as China and Japan where they were used to make finished products.

"So the industrial machines are in those countries. And then the products are exported to Indonesia at prices 15 times higher than the raw materials used. That era must be brought to an end. That is my resolve," he said.

Therefore, he said, he would encourage the limitation of raw material exports while developing industries that create added-value by issuing policies that provide incentives.

"Industries that give added value to our raw materials must be given special treatment," he said.

He said he believed with breakthrough policies such as incentives provision and limiting raw material exports industries that create added value would grow.

"Thereby, we will also be supporting the competitiveness of Indonesian products not only at home but also in export markets," he said.

Hidayat said he would again promote the glory and performance of rattan-based furniture industry in West Java province.

The chairman of the West Java chapter of the Indonesian Chamber of Commerce and Industry, Agung S Sutisno, meanwhile hoped that the government would seriously improve the performance and capability of domestic human resources and businesses with regard to creating more employment.

"There are around 400,000 workers in West Java who work abroad. They seek only Rp1.9 million there and therefore the government must create equal employment opportunities," he said.

Around 250 businesses from textile to food, bag, shoes, accessories, electronic and others took part in the expo.

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