1. Concept
and Objectives Industrialization
In the history of economic
development, the concept of industrialization originated from the first
industrial revolution in the mid 18th century in England, which is marked by
the discovery of a new method for the request, and the discovery of new methods
for spinning and weaving cotton that creates specialized in the production, as
well as increased productivity of factors production used. Afterwards,
innovation and new discoveries in the processing of iron and the steam engine,
which encourages innovation in manufacturing, among others, steel, railways and
steam ships. after that then followed the second industrial revolution in the
late 18th century and early 19th century with various teknonologi development
and innovation. After World War II, began to appear new technologies such as
mass production system by using assembling lines, electricity, motor vehicles,
the discovery of a variety of synthetic goods, and the technological revolution
of telecommunications, electronics, bio, computer, and use of robots. All these
developments change the pattern of industrial production, increase the volume
of world trade, and accelerated the process of industrialization in the world.
(Pangestu and Aswicahyono, 1996)
Economic history of the world shows
that industrialization is a process of interaction between technology
development, innovation, specialization of production and trade between
countries, which in turn is in line with rising incomes push strukttur economic
changes in many countries, from which was based on agriculture to one based on
industry. It can be said that especially the combination of the two boosters
from the aggregate supply side (production) the progress of technology and the
innovation of products and production processes, and increase the income of
people turn up the volume and composition of consumption aggregate demand side,
the primary force behind accumulation process of industrialization in the
world.
National industrial development
goals both medium and long term is intended to overcome the problems and
weaknesses in both the industrial sector and to address national issues,
namely:
1. Improving the employment
industry.
2. Improve Indonesia's exports and
empower the domestic market.
3. Contribute significantly to the
growth of the economy.
4. Support the development of the
infrastructure sector.
5. Improving technological
capabilities.
6. Increase the deepening of
industrial structure and product diversification.
7. Improve the industrial
deployment.
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