Dynamics of Indonesian Machinery Industry

Abstract

The industrial revolution changed the processes and ways of producing an item and reflects the rapid progress in technology. Previously, the production process needed human labor, but then underwent changes, human labor no longer become a priority in production activities because it was replaced by machines and sophisticated equipment that can increase productivity and efficiency in production. Through industrialization, economic activities are increasingly open and free, this is certainly a threat to the state if the products produced cannot compete in the market. In this study, we will discuss the growth of the machinery industry in Indonesia, analyze whether the machinery industry in Indonesia can compete competitively in the world market, how government policies support the industry, and slightly discuss how the industry relates to the concept of green economics. The method used in this study uses descriptive qualitative methods from various reference sources, and quantitative methods using secondary data in analyzing the comparative Indonesian machinery commodities. This study finds that: (1) The growth of the machinery and equipment industry has fluctuated over the past 6 years; (2) Indonesian machine commodities have a comparative disadvantage and have low competitiveness in the global market; (3) Government policies are needed to support the industrial sector; (4) Through the process of industrial development, it is necessary to realize the bill for the implementation of an industry that is advanced, competitive, independent and green.