"The higher the growth of the industrial sector the higher the need for imported raw materials will be. Therefore, we will build more factories (to produce raw materials)," Coordinating Minister for Economic Affairs Hatta Rajasa said following a coordination meeting here on Wednesday.
Indonesia could offer tax allowances and tax holidays to help develop factories including petrochemical industries to produce raw materials, he said.
Hatta said a team in charge of promoting exports and investments had observed efforts to increase raw material exports in terms of quantity and quality.
"This means that downstream industries which export raw materials must draw our serious attention so the exports can be reduced," he said.
Indonesia`s imports in 2010 were valued at US$135.61 billion, up 40.05 percent from US$96.83 billion the year before.
Raw material imports in 2010 surged 41.73 percent to US$98.69 billion from US$69.63 billion in the previous year.
Last year, China emerged as the biggest supplier of non-oil/non gas commodities to Indonesia with a value of US$19.69 billion, followed by Japan US$16.91 billion and Singapore US$10.05 billion.(*)
SDP-12/H-NG/S012
Raw material imports in 2010 surged 41.73 percent to US$98.69 billion from US$69.63 billion in the previous year.
Last year, China emerged as the biggest supplier of non-oil/non gas commodities to Indonesia with a value of US$19.69 billion, followed by Japan US$16.91 billion and Singapore US$10.05 billion.(*)
SDP-12/H-NG/S012
Editor: Jafar M Sidik
Copyright © ANTARA 2011
