3. Manufacturing Sector Development Indonesia
The development of the industrial sector in Indonesia in recent years is good enough. There are several factors that are used for projecting the growth of industrial sector in Indonesia, including the economic crisis in Europe and the entry of imported products into the domestic market. Meskpun current Indonesian manufacturing industry is experiencing bad luck, but this condition is predicted to boom in 2016. This prediction is based on a survey of several countries in Asia, an area of expansion of the investors from Hong Kong. Indonesia is believed to still be the main destination for investors to develop their business.
Through out the last 10 years, Indonesia's economic growth reached its highest point in 2011, namely by 6.2%. In 2012 the growth of industrial sector in Indonesia is projected to rise about 6.4 percent from the year 2011. At that time, the manufacturing industry is able to grow 6.7%. Economic and industrial growth declined subsequently, each only reached 5% and 5.5% in 2014.
On average, in the 10 years of economic growth in Indonesia was only 5.7% and 5% growth in the industry. Low average industrial growth compared to economic growth has reduced the role of the manufacturing sector to gross domestic product (GDP), which lived 22% in 2014 from 29% in 2009. Exports of manufactured products in the same period was also decreased. The decline in the role of the industrial sector can not be separated from the weakening factors supporting industrial competitiveness. And, most worrisome is the efficiency factor of the labor market, especially with regard to labor regulations. Factors employment at 5 position 43 years ago, has now become 110 or the bottom compared to other Asean countries. For this, the most affected are labor-intensive industries such as textiles and footwear. Indonesia weak competitiveness in the manufacturing industry can not be separated from the low mastery of technology. All of the factors described above to be a burden for the development of Indonesia's manufacturing industry.
REFERENSI
http://himiespa.feb.ugm.ac.id/peran-foreign-direct-investment-bagi-industri-manufaktur-indonesia/
ANITA SARASWATI (20215850)
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