Collaboration with the Government is Key to Driving Industrialization
Thursday, 17 October 2024
The Indonesian Employers Association (Apindo) stated that business actors can implement strategies to promote industrialization. One key factor is collaboration with the government.
Chairman of the Apindo Business & Industry Learning Center, I Made Dana Tangkas, emphasized that collaboration with the government is crucial in supporting industrialization. This includes leveraging fiscal incentives and supportive regulations.
"We also hope that the future leadership will provide consistent policies for business players, avoiding frequent changes as it creates confusion for entrepreneurs," he said during a National Seminar on Wednesday (16/10).
Made also mentioned that strengthening the supply chain through resource diversification is vital to anticipate global economic uncertainties.
Improving human resource (HR) competence through investment in vocational education is essential, particularly to face the transformation of Industry 4.0. The adoption of technology and innovation, as well as the implementation of ESG principles, are also important strategies to enhance competitiveness and access international funding.
On the other hand, Indonesia faces several key challenges in industrialization. First, infrastructure and logistics limitations, with about 40% of the country still lacking access to basic infrastructure. Second, the limitations in HR and technology, with Indonesia ranking 60th out of 141 countries in technological readiness, according to the World Economic Forum.
"Other challenges include overlapping regulations and licensing processes," he added.
Made further highlighted that global economic uncertainty, which affects supply chains, and pressure to reduce carbon emissions remain challenges for Indonesia's industrialization efforts. He noted that these issues significantly impact production efficiency and Indonesia's competitiveness.
