The five sectors comprise the leading natural resource industry, industrial services, skilled labor-intensive industry, basic industry, and technology-intensive innovation industry.
"In the next five years, we will promote focused industrialization. We tend to prioritize because if we are not selective we cannot produce focused policies," Bappenas' deputy for economic affairs, Amalia Adininggar Widyasanti, said.
She made the remarks during a national seminar organized by the Center of Reform on Economics (CORE) Indonesia here on Wednesday.
"By doing so, we can produce government interventions with clearer targets," she explained.
For the leading natural resources industry, the targeted commodity sectors include agro, mining, as well as marine resources.
Bappenas will focus on palm oil and coconut products in agro commodities.
"In the future, it will not only be exports of crude palm oil, but also palm oil derivative products. We have also prepared a master plan for coconuts, as coconut production in Indonesia is extraordinary," Widyasanti said.
In the mining sector, downstreaming will be expanded to commodities other than nickel, such as copper, bauxite, and tin.
Meanwhile, among marine resources, the government will encourage the downstreaming of seaweed.
“We are the second-largest producer after China, but what we export is raw seaweed, not processed. In fact, seaweed can create higher added value,” she said.
Furthermore, among skilled labor-intensive industries, the sectors of concern will be food and beverage, textiles and textile products, and footwear. Among basic industries, the targeted commodities will be chemicals and base metals.
Meanwhile, in the technology-intensive innovation industry, she listed a number of sectors, including cosmetics and pharmaceuticals, semiconductors, machinery and equipment, battery-based electric vehicles and aerospace, which will be accorded attention.
“We are an archipelagic country, we must have domestic air transportation. We want to create a local supply chain. So, the islands must become integrated economic areas. That way, Indonesia can have good and large economic strength,” Widyasanti explained.
Downstreaming and industrialization, which aim to increase the added value of domestic products, are included in the Asta Cita government program promoted by President-elect and Vice President-elect Prabowo and Gibran.
Translator: Imamatul Silfia, Yashinta Difa
Editor: Aditya Eko Sigit Wicaksono
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