Kadin urges focus on labor-intensive industries
The government needs to place more focus on the development of labor-intensive manufacturing industries, and the agricultural and mining sectors in order to maintain sustainable growth and reduce the country's high unemployment, the Indonesian Chamber of Commerce and Industry said, The Jakarta Post reported Wednesday (26/12/07).

Speaking at the chamber's year-end economic review last week, Kadin chairman Muhammad S. Hidayat said the development of the agricultural, manufacturing and mining sectors should serve as the backbone of the country's future growth given their greater impact on people's lives.

Although the plantation sector showed high growth of 8.9% during the first nine months of this year thanks to sharp increases in commodity prices overseas, other sub sectors of agriculture, such as aquaculture, cattle-raising and the forestry industry, had suffered lower growth.

Kadin hailed the government's efforts to put the economy back on track this year, as indicated by the improvements in most economic indicators, such as GDP growth, inflation and the central bank's benchmark rate.

The chamber, however, said that growth had failed to provide sufficient jobs as expected because many of the drivers of economic growth came from sectors that were not labor intensive.
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