Indonesia's Competitiveness Lowest in SE Asia

Jakarta, Indonesia (News Today) - Industry Minister MS Hidayat said the competitiveness of the national industry is among the lowest in Southeast Asia because of poor infrastructures supporting the country’s industrial growth.

"I heard Singapore’s industrial growth currently exceeds 10 percent, Malaysia 6 percent and Thailand 8 percent. Their competitive edges can increase significantly," he said at a gathering to break the fast here on Tuesday.

The government has set the target of industrial growth at 4.5 percent for this year compared to 2.5 percent last year. He said the Indonesian manufacturing industry had begun to face competition from neighboring countries in Southeast Asia and therefore, all parties must keep the growth of the national industry on the right track.

The government’s plan to raise basic power tariffs by 15 percent next year would no doubt put a further strain on the competitive edge of the national industry because it had raised power tariffs by a maximum of 18 percent in July, he said. But he added the government was still undecided about options to reduce subsidy in the state budget.

"Some quarters have responded to the reduction of subsidy in the draft 2011 state budget as the government’s plan to raise basic power tariffs. As a matter of fact, raising power tariffs is one of the options or the last resort or even may not be taken," he said.

Source : kompas

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