Indonesian Policy of Industrialization Now and in the Future (Direction) A. Policies of Industrial Now (Direction) -Regulations -Industrial Development Targets -The Stages of Achieving Industrial Development B. Policies of Industrial FUture (Direction) -Long Term Development Stage -Benefit the Policy Industrialization for Indonesia -Disbenefit the Policy Industrialization for Indonesia

1. INDONESIAN POLICY OF
INDUSTRIALIZATION NOW
AND IN THE FUTURE
(DIRECTION)
GROUP 7 :
1. HERU H. 023201905028
2. MAGGIE W. 023201905022
3. OLIVIA R.N. 023201905016
4. RAMADHAN S. 023201905034

2. REGULATIONS :
• UU NO. 3 TAHUN 2014 PASAL 12
• PP NO.14 TAHUN 2015

3. POLICIES OF INDUSTRIAL NOW
(DIRECTION)
• INDONESIAN POLICY OF INDUSTRIALIZATION 2015 – 2019 BASED ON UU NO. 3 TAHUN 2014
TENTANG PERINDUSTRIAN PASAL 12 DAN PP NO. 14 TAHUN 2015 TENTANG RENCANA
INDUK PEMBANGUNAN INDUSTRI NASIONAL 2015 – 2035 PASAL 3.
VISION OF POLICY INDUSTRIALIZATION:
• THE POLICY DIRECTION FOR IMPLEMENTING THE NATIONAL INDUSTRIAL DEVELOPMENT
MASTER PLAN FOR THE PERIOD 2015 - 2019
• GUIDELINES FOR THE GOVERNMENT AND REGIONAL GOVERNMENTS IN THE PREPARATION
OF INDUSTRIAL DEVELOPMENT PLANS
• REFERENCE FOR BUSINESS / INDUSTRY PLAYERS IN DEVELOPING AND DEVELOPING
INDUSTRIES
• GUIDELINES FOR OTHER INTERESTS AND THE WIDER COMMUNITY IN ORDER TO SUPPORT
THE IMPLEMENTATION OF INDUSTRIAL DEVELOPMENT IN ACCORDANCE WITH THEIR
RESPECTIVE DUTIES AND ROLES
• BENCHMARK OF PROGRESS AND SUCCESS OF INDUSTRIAL DEVELOPMENT IN 5 (FIVE) YEARS

4. POLICIES OF INDUSTRIAL NOW
(DIRECTION)
• STRENGTHENING THE STRUCTURE OF THE OIL AND GAS BASED INDUSTRY
• DEVELOP AND EXPAND A PETROCHEMICAL INDUSTRY THAT IS STILL LACKING (UNABLE TO
MEET DOMESTIC NEEDS) & ALSO TO REDUCE IMPORTS OF PETROCHEMICAL PRODUCTS.
• INCREASE PROTECTION FOR THE INVESTORS OF STRATEGIC INDUSTRY, WHOSE INVESTMENTS
ARE EXPENSIVE, LOW PROFIT MARGINS, AND ONLY PRODUCE LONG-TERM RESULTS.
• ATTRACTING DOMESTIC AND FOREIGN INVESTORS TO DEVELOP INDUSTRIES TO PRODUCE
RAW MATERIALS THAT THE IMPORTS ARE VERY HUGE
• DEVELOP A INDUSTRY OF IMPORT SUBSTITUTION TO REDUCE IMPORTED RAW MATERIALS
• TAX HOLIDAY (FOR 5 PIONEERING INDUSTRIAL SECTORS)
• TAX ALLOWANCE
• DISCHARGE OF IMPORT TAX

5. INDUSTRIAL DEVELOPMENT
TARGETS
• INCREASE THE GROWTH RATE OF THE PROCESSING INDUSTRY WITHOUT OIL AND GAS TO
REACH 8.4% IN 2019.
• INCREASE THE ROLE OF THE PROCESSING INDUSTRY WITHOUT OIL AND GAS IN THE
ECONOMY TO 19.4% IN 2019.
• REDUCING DEPENDENCE ON IMPORTS
• INCREASE EXPORTS OF INDUSTRIAL PRODUCTS
• INCREASING THE DISTRIBUTION AND DISTRIBUTION OF INDUSTRIAL ACTIVITIES
• INCREASING THE ROLE OF SMALL AND MEDIUM INDUSTRIES
• INCREASE INNOVATION AND USE OF TECHNOLOGY
• INCREASE LABOR ABSORPTION.
• STRENGTHEN THE INDUSTRIAL STRUCTURE.
• INCREASE THE ADDED VALUE OF NATURAL RESOURCES.
• STRENGTHENING NATIONAL ECONOMIC CONNECTIVITY

6. QUANTITATIVE TARGET OF INDUSTRIAL
DEVELOPMENT 2015 - 2019

7. FOCUS ON INDUSTRIAL
DEVELOPMENT
• INCREASING THE ADDED VALUE OF NATURAL RESOURCES IN THE UPSTREAM
INDUSTRY BASED ON AGRO, MINERALS, AND OIL AND GAS, AND COAL
• INCREASED INDUSTRY CAPABILITIES THROUGH INCREASED HUMAN RESOURCE
COMPETENCE AND TECHNOLOGICAL MASTERY
• INDUSTRIAL DEVELOPMENT IN ALL REGIONS OF INDONESIA THROUGH WPPI,
KPI, INDUSTRIAL AREAS AND IKM

8. THE STAGES OF ACHIEVING INDUSTRIAL
DEVELOPMENT
• DEVELOPMENT OF INDUSTRIAL RESOURCES:
1. INDUSTRIAL HR DEVELOPMENT
2. UTILIZATION, SUPPLY AND DISTRIBUTION OF NATURAL RESOURCES
3. DEVELOPMENT AND UTILIZATION OF INDUSTRIAL TECHNOLOGY
4. DEVELOPMENT AND UTILIZATION OF CREATIVITY AND INNOVATION
5. PROVISION OF INDUSTRIAL FINANCING SOURCES
• DEVELOPMENT OF INDUSTRIAL FACILITIES AND INFRASTRUCTURE
1. INDUSTRIAL STANDARDIZATION
2. INDUSTRIAL INFRASTRUCTURE
3. NATIONAL INDUSTRY INFORMATION SYSTEM

9. • INDUSTRIAL EMPOWERMENT:
1. GREEN INDUSTRY
2. STRATEGIC INDUSTRIES
3. INCREASED USE IN THE COUNTRY
4. INTERNATIONAL COOPERATION
5. SECURITY AND RESCUE OF THE INDUSTRY
• INDUSTRIAL ZONING
1. DEVELOPMENT OF WPPI
2. KPI DEVELOPMENT
3. THE DEVELOPMENT OF NEW INDUSTRIAL AREAS OUTSIDE JAVA AND THE IMPROVEMENT OF
EXISTING AREAS
4. DEVELOPMENT OF SMALL AND MEDIUM INDUSTRY CENTERS

10. • AFFIRMATIVE POLICY OF SMALL AND MEDIUM INDUSTRIES
1. STRENGTHENING OF INSTITUTIONS
2. GROWTH OF NEW ENTREPRENEURS
3. PROVISION OF FACILITIES

11. POLICIES OF INDUSTRIAL FUTURE
(DIRECTION)
REGULATION :
• UUD NKRI 1945
• UU NOMOR 25 TAHUN2004
• UU NOMOR 17 TAHUN 2007
• UU NOMOR 3 TAHUN 2014
• PERATURAN PRESIDEN NOMOR 2 TAHUN 2015

12. POLICIES OF INDUSTRIAL FUTURE
(DIRECTION)
• DEVELOP A STRONG, ORIENTED AND GLOBALLY COMPETITIVE DOMESTIC
ECONOMY
• A GRADUAL TRANSFORMATION FROM AN ECONOMY BASED ON
COMPARATIVE ADVANTAGE TO AN ECONOMY OF COMPETITIVE ADVANTAGE
• BASIC PRINCIPLES:
1. MANAGE NATIONAL PRODUCTIVITY IMPROVEMENT THROUGH INNOVATION
AND MASTERY OF SCIENCE AND TECHNOLOGY.
2. MANAGING ECONOMIC INSTITUTIONS THAT IMPLEMENT BEST PRACTICES
AND GOOD GOVERNANCE IN A SUSTAINABLE MANNER

13. LONG TERM DEVELOPMENT STAGE

14. POLICIES OF INDUSTRIAL IN FUTURE
(DIRECTION)
1.IMPROVEMENT OF MATERIAL FLOW (MATERIAL INDUSTRIES)
MATERIAL THAT PRODUCE IN NATIONAL INDUSTRIES THEN CONSUME IN
NATIONAL INDUSTRIES TOO. BECAUSE HUGE IMPORT IN MATERIAL OF
PETROCHEMICAL INDUSTRY.
2. ACCOMMODATE GLOBAL SUSTAINABILITY TREND
LIKE EV, BIOFUEL, RENEWABLE ENERGY.
3. SUPPORTING THE GROWTH OF SMALL AND MEDIUM-SIZED ENTERPRISES
ENSURING THAT THERE ARE NO TAXES THAT PENALIZE SMALL FIRMS,
HELPING THEM GAIN ACCESS TO MARKETS WITH E-COMMERCE, AND
CREATING A COMPETITIVE CULTURE.

15. POLICIES OF INDUSTRIAL IN FUTURE
(DIRECTION)
4.ESTABLISH A PUBLIC INNOVATION INFRASTRUCTURE, FACILITATE TECHNOLOGY
ADOPTION
IMPROVE TRANSPORT AND TELECOMMUNICATIONS INFRASTRUCTURE.
INVESTMENT IN INFORMATION AND COMMUNICATION TECHNOLOGY (ICT)
INFRASTRUCTURE.
5. ATTRACTING FOREIGN INVESTORS
GIVING THE SUPPORTING FISCAL AND MONETARY POLICIES THAT CAN
ENCOURAGE GROWTH AND TECHNOLOGY TRANSFER.
6. ENHANCED THE QUALITY OF HUMAN RESOURCE
ADDING SKILLS IN EDUCATION WITH TECHNOLOGY 4.0. DEVELOPING
COLLABORATIVE PARTNERSHIPS BETWEEN INDUSTRY AND PROVIDERS OF
EDUCATION AND TRAINING.

16. POLICIES OF INDUSTRIAL IN FUTURE
(DIRECTION)
7.GIVING INSENTIF FOR TECHNOLOGY INVESTMENT
INTRODUCE TAX EXEMPTION/SUBSIDIO TO ADOPT TECHNOLOGY. GIVING THE
SUPPORTING FISCAL.
8. HARMONIZATION OF RULES AND POLICIES
DO HARMONIZATION ACROSS MINISTRIES

17. BENEFIT THE POLICY INDUSTRIALIZATION
FOR INDONESIA
• INCREASE THE COUNTRY'S FOREIGN EXCHANGE
FOREIGN EXCHANGE FUNCTION:
1. OVERSEAS PAYMENT INSTRUMENTS
2. FOREIGN DEBT PAYMENT INSTRUMENTS
3. FOREIGN RELATIONS FINANCING TOOLS
4. AS A SOURCE OF STATE REVENUE
• ABSORBING LABOR
• INCREASE COMMUNITY INCOME
• THE OPENING OF INFORMAL BUSINESSES

18. BENEFIT THE POLICY
INDUSTRIALIZATION FOR INDONESIA

19. DISBENEFIT THE POLICY
INDUSTRIALIZATION FOR INDONESIA
• AGRICULTURAL LAND LOSS
• ENVIRONMENTAL POLLUTION
• THE OCCURRENCE OF LARGE-SCALE URBANIZATION
• CHANGES IN COMMUNITY BEHAVIOR

20. THANK YOU