Gov’t Issues Instruction for Deregulation to Boost Labor-Intensive Industry Competitiveness

President Prabowo Subianto led a meeting with the National Economic Board at the Merdeka Palace, Jakarta, on Wednesday, (03/19). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto Wednesday (03/19) led a meeting with the National Economic Board (DEN) at the Merdeka Palace, Jakarta.

The meeting focused on discussing efforts to strengthen labor-intensive industry sectors.

During the meeting, the President gave instruction for doing massive deregulation to boost competitiveness, create employment, and speed up investment in textile sector, textile products, shoes, and other labor-intensive sectors.

Coordinating Minister for Economic Affairs Airlangga Hartarto said one of the Government’s main concerns is textile sector and textile products that currently employs almost 4 million workers and records the export value over US$2 billion.

“The first directive is that the Government should take a look on the whole supply chain and harmonize the tariff. Secondly, we respond to dumped goods through anti-dumping measures. The Government will also form an acceleration taskforce,” Airlangga told the media in a press statement after the meeting.

The President also pushes for the labor-intensive sector to be involved into the National Strategic Project list, aiming to provide ease of licensing and giving incentive facilities.

Meanwhile, in an effort to maintain industry competitiveness, the Government also provides revitalization packages for manufacturing machines.

The Government also allocates Rp20 trillion for investment credit with 5% credit interest subsidy for labor-intensive sectors, such as textile, shoes, food and beverages, and furniture.

“Through a well-managed labor-intensive sector, it is expected to create more job opportunities. We also hope that this industry will grow again after the EU CEPA negotiation,” Airlangga said.

In the meantime, Chief of DEN Luhut Binsar Pandjaitan also said that the Government will soon follow up on the President’s directive through a limited meeting in a near future. He said that currently, the team from the Coordinating Minister for Economic Affairs and DEN has collaborated to discussed on the deregulation issue.

“The President’s instruction is clear and it will be followed up in a limited meeting next week. So, we can immediately announce the measures to be taken. This will not hamper the industries that want to invest in Indonesia,” Luhut said.

He also asked for all sides to collaborate to do monitoring for deregulation to be well-implemented.

“The President gave a clear instruction on the deregulation issue. This deregulation will reduce corruption, make work more efficient, and build a better economic ecosystem,” he said. (BPMI of Presidential Secretariat) (JAS/EP)