Indonesia's Economy Needs to Be Driven Based on Manufacture Industry
By : Herry Barus And Aldo Bella Putra | Saturday, January 27 2018 - 18:00 IWST

Mantan Menteri Keuangan Chatib Basri (Foto Ist)
INDUSTRY.co.id - Jakarta - Economist who is also former Finance Minister, Chatib Basri, said Indonesia's economy needs to be encouraged to shift from natural resource-based commodities to manufacturing so as to contribute to global growth performance.
"Now we cannot really enjoy a big increase in global growth, as well as economic improvements in the United States, because the country that can enjoy it is a manufacturing-based economy," said Chatib met after the launch of the Bureau of Economics and Research Research / IBER) in Jakarta, Friday (26/1/2018).
Economist from the University Of Indonesia (UI) explained that the share of exports to Indonesia's gross domestic product by 25 percent, and most exports are energy and commodities.
This shows that Indonesian products depend on global price conditions. As the price of coal and palm oil rises, for example, the Indonesian economy also rises as it did in the period 2002 to 2012.
"However, as the price collapsed, the Indonesian economy also declined, which also explains why Singapore's economic growth in the third quarter of 2017 could grow 5.2 percent (year-on-year / yoy) and Malaysia 6.2 percent (yoy)," he said.
Chatib explains why Indonesia is not enjoying the world's economic growth because its base is not manufacturing. He said Indonesia is heading in that direction and to achieve it takes time.
"If we want to push growth again there, then we have to run to 'manufacturing-based', and it will not happen instantly," he said.
To support a manufacturing-based economy, people's purchasing power also needs to be strengthened. Chatib assesses what the government needs to do in the short term is to get people to have the ability to spend.
"The poor can spend money if they can get money, whether through cash transfers, family hopes, or 'cash for work' programs, they're given money, all kinds of programs like that help (purchasing power)," he said.
Read Also
Today's Industry

Jumat, 02 Mei 2025 - 10:46 WIB
Binawan and Government Support Indonesian Nurses in Europe through Scholarships
In the midst of the viral #KaburAjaDulu hashtag as a symbol of the young generation's disappointment with domestic working conditions, Binawan responded with real action: dispatching Indonesian…

Jumat, 28 Maret 2025 - 22:21 WIB
SUNeVision Initiates MEGA IDC Phase Two Development
SUNeVision, the technology arm of Sun Hung Kai Properties (SHKP), today announced the commencement of construction for Phase Two of MEGA IDC in Tseung Kwan O. As Hong Kong's largest data centre…

Jumat, 28 Maret 2025 - 22:07 WIB
TDL Records New Revenue Record of IDR 25 Trillion in 2024 Ahead of 50th Anniversary
PT Metrodata Electronics Tbk (MTDL), the largest technology Company with the most complete IT and telecommunications products in Indonesia, managed to record a revenue of IDR 25 trillion in…

Jumat, 28 Maret 2025 - 22:00 WIB
Wireless Logic Selected By Thales As IoT Connectivity Partner
Wireless Logic, a global leader in IoT connectivity solutions has been selected by Thales, a global leader in advanced eSIM technologies, to enable secure, scalable and resilient IoT connectivity…

Jumat, 28 Maret 2025 - 21:53 WIB
Microvista Expands International Presence with Mobile CT System ScanExpress
The German specialist in industrial computed tomography and non-destructive testing, Microvista, announces the European expansion of its innovative mobile CT system, ScanExpress. The system…
News Comment