The Role of Secondary Industries In Indonesia<br />Nadia Wahika<br />
The Indonesian secondary industry, otherwise known as the manufacturing industry, have been facing changes in business env...
The Secondary Industry involves in changing raw materials provided by the primary industries and turn it into valued goods...
Indonesia’s Secondary IndustriesThen – Now<br />	In the history of Indonesia’s Manufacturing Industry there are four well-...
	First is a period of very rapid growth in the period 1967-1973 due to the liberalization in all sectors and the economic ...
	Third is the phase 1981-1985, the world oil prices continue to decline and force the government to review industrial poli...
Indonesia’s Secondary IndustriesNow - Future<br />	Even in the midst of the global economic crisis, Indonesia’s manufactur...
	According to Loretta Wan, the Regional Director for South East Asia and India of the Hong Kong Trade Development Council ...
Table from: http://www.emeraldinsight.com/fig/1060140605001.png<br />
The Role of the Secondary Industry in Indonesia<br />It is inevitable to say that ever since Suharto’s time industrializat...
The Indonesian Manufacturing industry plays an important role in the Indonesian economic since Indonesia can’t rely on oil...
Indonesia’s secondary industries still need to be improved. <br />According to AchmadS.Sofwan, Chief Operations Officer Fu...
	According to economist Hal Hill when analyzing Indonesia’s industrial growth in detail.<br />	The most important industri...
References<br />Daniel, Wahyu. (2009). IndustriManufaktur Indonesia MasihSeksi. Month 7 Day 27 Year 2010. http://www.detik...
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Humanities

  1. 1. The Role of Secondary Industries In Indonesia<br />Nadia Wahika<br />
  2. 2. The Indonesian secondary industry, otherwise known as the manufacturing industry, have been facing changes in business environment. <br /> In this short presentation we shall review how secondary industries have contributed to the industrial development in Indonesia.<br />
  3. 3. The Secondary Industry involves in changing raw materials provided by the primary industries and turn it into valued goods. <br />
  4. 4. Indonesia’s Secondary IndustriesThen – Now<br /> In the history of Indonesia’s Manufacturing Industry there are four well-known phases of high growth and rapid structural transformation occurred. <br />
  5. 5. First is a period of very rapid growth in the period 1967-1973 due to the liberalization in all sectors and the economic recovery. Inflation decreased rapidly.<br /> Second is the period of Bonanza Oil (the Oil Boom) in the period 1973-1981, characterized by industrialization, which is directed by the government and banks financed by the government.<br />
  6. 6. Third is the phase 1981-1985, the world oil prices continue to decline and force the government to review industrial policy, especially investment in oil and gas industry projects. <br /> Only in 1985 did the fourth phase began, the government changed its investment. In these phases the private sector becomes the main engine of Indonesia's industrial sector. <br />
  7. 7. Indonesia’s Secondary IndustriesNow - Future<br /> Even in the midst of the global economic crisis, Indonesia’s manufacturing sector is still attracting investors. <br /> The products of Indonesia’s manufacturing industries, though currently low in demand in the international market, have potential to grow again because of competitive advantage in terms of price and uniqueness.<br />
  8. 8. According to Loretta Wan, the Regional Director for South East Asia and India of the Hong Kong Trade Development Council Delegation; <br />Indonesia’s Manufacturing Sector’s situation is expected to get much better in 2015, considering the amount of Hong Kong investors who still considers Indonesia the main destination to expand their business. <br />China is also looking to expand their manufacturing sector investment in Indonesia.<br />
  9. 9. Table from: http://www.emeraldinsight.com/fig/1060140605001.png<br />
  10. 10. The Role of the Secondary Industry in Indonesia<br />It is inevitable to say that ever since Suharto’s time industrialization has affected a structural transformation in Indonesia.<br /> Despite its increasing significance, the industrial sector employed only about 10 percent of the work force available in Indonesia.<br />
  11. 11. The Indonesian Manufacturing industry plays an important role in the Indonesian economic since Indonesia can’t rely on oil and gas exports. <br /> Even so, Indonesia is still relying on income from exported-goods. This is why the manufacturing industry needs to be more developed. <br />
  12. 12. Indonesia’s secondary industries still need to be improved. <br />According to AchmadS.Sofwan, Chief Operations Officer Fujitsu Indonesia;<br />“To deal with these business dynamics, the national manufacturing industry can leverage its competitiveness by implementing IT solutions that can improve productivity, increase operational efficiency while at the same time lowering costs. They have to do it all while considering the environmental impacts."<br />
  13. 13. According to economist Hal Hill when analyzing Indonesia’s industrial growth in detail.<br /> The most important industrial sector in Indonesia is oil and natural gas processing, which accounted for more than 25% of the total value-added in industrial output. The second major industrial activity was the production of kretekcigarette. Cigarette production accounts for 12 percent of total industrial value-added.<br />
  14. 14. References<br />Daniel, Wahyu. (2009). IndustriManufaktur Indonesia MasihSeksi. Month 7 Day 27 Year 2010. http://www.detikfinance.com/read/2009/02/19/105018/1087260/4/industri-manufaktur-indonesia-masih-seksi<br />(2009). IndustriManufakturdi Indonesia AkanMeningkatdi 2015. Month 7 Day 27 Year 2010. http://www.kbn.co.id/web2009/id/news-detail/227<br />(2009). Indonesia PunyaPotensiJadiPusatIndustriManufakturDunia. Month 7 Day 27 Year 2010. http://www.mediaindonesia.com/read/2009/05/05/74135/21/2/Indonesia-Punya-Potensi-Jadi-Pusat-Industri-Manufaktur-Dunia(<br />2010). Fujitsu held "Fujitsu Indonesia Manufacturing Day 2010". Month 7 Day 27 Year 2010. http://www.fujitsu.com/id/news/pr/20100520-en.html<br />(2010). China akanTingkatkanInvestasiSektorManufaktur Di Indonesia. Month 7 Day 27 Year 2010. http://www.antaranews.com/berita/1270231557/china-akan-tingkatkan-investasi-sektor-manufaktur-di-indonesia<br />

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