The Ministry of Industry (Kemenperin) has identified 9 major challenges faced by industrial players in Indonesia. What are these challenges, and how can they be resolved? Let’s explore them in detail along with potential solutions.
One hallmark of a growing and developing nation is the strength of its industrial sector. Recently, the Indonesian Ministry of Industry highlighted several obstacles currently hindering the progress of this sector. At least 9 significant barriers are commonly encountered by industry players across the country.
These challenges have made it difficult for Indonesian industrial players to grow and compete. So, what exactly are these obstacles, and how can they be addressed? Read on for a detailed explanation.
Kemenperin's 9 Industry Challenges
According to the Ministry of Industry, the government has mapped out 9 key challenges that could hinder industrial growth in Indonesia. These include issues such as raw materials, infrastructure, utilities, skilled labor availability, import pressures, and more. Here’s a breakdown:
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Raw Materials
The first challenge relates to the rising prices and scarcity of raw and auxiliary materials. For example, gas supply plays a critical role. Minister Agus Gumiwang emphasized the need to secure a steady supply of these materials for industry. -
Infrastructure
Infrastructure is vital for ensuring smooth industrial operations. Kemenperin continues to push for the development and expansion of industrial zones. -
Utilities
Utilities, including electricity, water, and waste treatment, remain a barrier in many areas due to limited facilities and infrastructure. -
Availability of Skilled Labor
A major challenge is the shortage of skilled professionals. To address this, Kemenperin has initiated vocational training programs using a dual system and D1-equivalent education in collaboration with industry. Training, certification, and job placement programs are also ongoing to meet workforce needs. -
Pressure from Imported Products
In today’s globalized world, the influx of imported goods hampers domestic industrial growth. Kemenperin is addressing this by expanding export markets and implementing safeguard policies to protect against imports. -
Plastic Waste as Hazardous Waste (B3)
Many industries still view waste, including plastic, as something that must be destroyed. In fact, plastic and other B3 waste can often be reprocessed and reused as industrial raw materials. -
Challenges for Small and Medium Enterprises (SMEs)
Strengthening SMEs is essential for national industrial growth. Kemenperin aims to empower SMEs through digital platforms like Smart Sentra, Smart Material Center, and Smart IKM. -
Logistics for the Industrial Sector
Logistics continues to be a major bottleneck, especially due to trade restrictions and ever-changing government regulations. This significantly impacts production and business continuity. -
Industrial Sector Data Management
Weak data infrastructure is another problem, often leading to issues like tax discrepancies. Strengthening industrial data systems is crucial for strategic planning and policy implementation.
Overcoming Logistics Challenges with Transcon Indonesia
As mentioned, logistics is one of the most pressing challenges in the industrial sector—mainly due to regulatory uncertainty and shifting trade policies. These issues can significantly disrupt industrial operations.
But there’s good news. Transcon Indonesia is here to help resolve those challenges effectively.
With its e-logistics services and Bonded Logistics Center (PLB) facilities, Transcon Indonesia provides cost-efficient logistics support for industries. Backed by an advanced IT team, Transcon also supports digital transformation for businesses in the Industry 4.0 era.
Whether you need assistance with logistics or customs clearance, you can trust Transcon Indonesia to handle it all smoothly and efficiently.