Industrial Development

Development Outside Java Needs Attention

VIVAnews - The Department of Industry will prioritize industry development outside of Java in a long term plan of 2010 - 2020 period.

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"The industries contribution to the Gross Domestic Product (GDP) in Java is more than 75 percent," said the Secretary General of the Industry Department, Agus Tjahayana, to VIVAnews in Jakarta on Thursday, Feb. 19.

Meanwhile, he said, the natural resources potential outside of Java is still very high. Tjahayana cited the East Kalimantan province as an example. Its growth in industries was from 12,825 units in 2004 to 15,168 units in 2008. "This is a 4.2 percent growth," he said.

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Tjahayana said that East Kalimantan has agro-industrial based high-yielding commodities with 4.28 percent year-on-year growth in 2008, contributing 1.23 percent to the GDP.

The government aims to increase the East Kalimantan industries' contribution to the GDP by 8.8 percent and the industries' growth by 18.6 percent during 2014 - 2020 period.

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The East Kalimantan industry growth will be based on agro-industry, basic-chemicals industry, and oleochemicals. "The provincial government needs to drive the potential in some areas like in Samarinda, Balikpapan, Bontang, Tarakan, East Kutai, and West Kutai," he said.

This is possible because of the positive 2008 GDP growth in several sectors, such as in wood and chemical industry. "The wood industry grows by 3.45 percent, and there's a 4.46 percent growth in the chemical industry," said Tjahayana. Other sectors that still have positive growth, among others, are non-oil-and-gas industry (4.06 percent), food and beverages (2.34 percent), and transportation vehicles and machinery (9.79 percent).

Meanwhile, negative growth occurred in textile and textile products by as much as minus 3.64 percent, paper (-1.48 percent), cement (-1.49), metal (-2.05 percent), and other sectors (-0.96 percent). "The 2008 GDP growth altogether is 6.06 percent," said Tjahayana.

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Translated by: Ariyantri E. Tarman

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