Industry Ministry strengthens industry to anticipate trade war

Jakarta, InfoPublik – Industry Minister said the government has prepared a number of strategies to further strengthen the domestic industry to counter the impact of trade war between the United States and China, while maintaining national economic resilience amid the depreciation of the rupiah.

"Mr. President has said that we will optimize the fiscal tool. It can take the form of export duty, import duty, or harmonization of the import duty itself. The step is taken in order for the industry to have competitiveness and be able to increase exports," Airlangga said in a statement received on Friday (7/13).

The government will guarantee the availability of raw materials. Then, they provide incentives so the export could continue to improve. Regarding investment, the government is preparing for incentives for factory relocation, as well as providing incentives for small and medium industries.

"For example, in the field of furniture, the government will fund or subsidize the cost for the timber legality verification system (SVLK)," he said.

Increased use of domestic production or the compliance to local content requirements will also be urged, especially in government procurement. In result, national industry utilization can be improved.

"We would also study national industries with potentials to improve their utilization to maintain the availability of domestic raw materials. It comprises the corporations such as those in Tuban, which can provide raw materials on both Petrochemical and Fuel," Airlangga said.

On the other hand, the use of biodiesel which is at 20 percent rate is going to be raised to 30 percent. "So it will increase the consumption of biodiesel by 500,000 tons per year. Well, this study is what the President asked to be made immediately," added Airlangga.

The government will also maximize the tourism sector, one of which by development of airports. "The development of low cost carrier is also important since tourism is one of the most feasible sector that can be encouraged," he concluded. (Translator: Erik Limantara)