Jumat, 17 Juni 2016

Industrialization Indonesia

4.     Problems Industrialization

Industrialization in developing countries are generally done in an effort to replace imported goods, by trying to make their own commodities beginning always imported. The first strategy is done is the implementation of tariff barriers against imports of certain products. Next followed by building domestic industries to produce goods at the import. In addition, they are also given incentives such as tax breaks, as well as a variety of facilities and other investment stimuli.
For a new small industry grow, especially in developing countries. A new industry built yet have sufficient capacity to compete head-on with an established industry of the countries that are already developed. Industry developed countries has been on the business in a long time and have been able to improve efficiency in production processes. They have enough information and knowledge about the optimization of the production process, the situation and characteristics of the market, as well as labor market conditions so that they are able to sell a valuable product cost in the international market but still able to produce an adequate profit.

The national economy has various problems in relation to the industrial and commercial sector:
1. The national industry has been more emphasis on large-scale industry and high-tech industries. This strategy resulted in the development of industries based on imports. These industries are often hit by the depreciation of the rupiah sharply,
2. The spread unevenly because the industry is still concentrated in Java. Industry is only concentrated in one region is certainly not in line with the geographical condition of Indonesia which calls itself as an archipelago.
3. Weak export activities Indonesia who depend on import content of raw materials is high, also the high level of bank lending rates in Indonesia, apalgi Indonesia has not fully accepted in the international market
4. The composition of Indonesian export commodities in general is not a commodity that is highly competitive, but because it is related to the availability of natural resources - such as fishery products, coffee, rubber, and wood. the availability of cheap labor - such as textiles, footwear and electronic goods
5. The primary commodity exports that are a mainstay of Indonesia generally in the form of raw materials so that the added value obtained is very small. For example, Indonesia exported in the form of sawn timber, which is then imported again in the form of furniture because of limited mastery of design and technology.
6. Still relatively low quality of human resources. It is highly influenced by the formal education system and the implementation of training cebderung pattern still common and less oriented to the development needs of the business. In addition, the low quality of human resources as a result of the pattern of employment in the past are still concerned with the amount of human labor is absorbed. rather than the quality of human labor.

Indonesia industrial system does not have the capability of accountability and independent adjustment. Therefore very weak in anticipation of change and unable to undertake precautionary measures to deal with the change occurs. The changing demands of the market and the competition among industry globally not just include changes in the pattern, nature, quality, and price of the commodity being traded, but also other demands arising from the development of the idealism of the world community to human rights, environmental protection, trade liberalization, etc. Motion Indonesian economy is highly dependent on foreign capital flows into or out of Indonesia and the amount of foreign exchange reserves accumulated through trade and foreign debt.
Policies that have been pursued in a sustainable manner was observed not able to bring Indonesia's economy become more self-sufficient, even becoming dependent on:
            · Dependence on export earnings,
            · Dependence on foreign loans,
            · Reliance on foreign investment,
            · Dependence on imported technology from industrialized countries.

REFERENSI

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