"The role of labour-intensive industry is very low."Jakarta (ANTARA News) - Indonesia needs economic growth that helps create more jobs and is not just on paper, according to Gajah Mada University economist Revrisond Baswir.
"The role of labour-intensive industry is very low. De-industrialization has been taking place in the country since the adoption of the ASEAN-China Free Trade Area (ACFTA)," he said here on Wednesday.
The ACFTA agreement has resulted in industries, particularly micro industries and small-scale businesses, having no protection at home, Revrisond added.
Sectors which can be developed as a labour-intensive industries are plantation, agriculture, food, textiles and handicraft, he noted.
"The government`s policy is still far from what is ideal to reduce the rate of unemployment and improve the people`s welfare," Revrisond said.
In the meantime, Indonesian Chamber of Commerce and Industry (Kadin) chairman Suryo Bambang Sulisto stated that it was important to develop the regional economies in order to achieve sustainable economic growth for the country.
Indonesia`s economy gets its strength from the small-scale businesses and natural resources spread across its regions, he said.
"The government has so far given inadequate attention to micro, small and middle enterprises. These small players make a big contribution to the state revenues through the taxes they pay," Suryo pointed out.(Uu.A014/INE/KR-BSR/S012)
Editor: Priyambodo RH
Copyright © ANTARA 2012
