SMERU Briefing to Bappenas’ Directorate for Industry, Creative Economy and Tourism

Bappenas’ Directorate for Industry, Tourism, and Creative Economy held a knowledge sharing session on 18 October 2016 with the SMERU Research Institute on productivity in the Indonesian manufacture industry sector.

Bappenas’ Directorate for Industry, Tourism, and Creative Economy held a knowledge sharing session on 18 October 2016 with the SMERU Research Institute on productivity in the Indonesian manufacture industry sector. Bappenas is currently reviewing the national industry policies (the medium-term KIN 2015-2019 and the long-term RIPIN 2015-2035) to include them in a presidential decree on industry policy. 

Dr. Zulfan Tadjoeddin, a SMERU research fellow and Senior Lecturer on Development Studies at the University of Western Sydney, presented a recent SMERU study focusing on the work force perspective in medium and small industries. 

The study concludes that the industry is still depending on low-cost labour and export oriented, productivity is high in manufacture sector, wages always increases, and wage policy is applied to upgrade the productivity. The discussion also raised some findings that economic growth and labour absorption are not parallel: economy grows but unemployment rate increases; besides, the industry sector has never contributed to poverty alleviation. 

Bappenas confirmed that inputs from the meeting will be reference for formulating policy to support labour intensive industry.

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