POLITICAL ECONOMY IN GLOBAL INDUSTRIALIZATION DEVELOPMENT

POLITICAL ECONOMY IN GLOBAL INDUSTRIALIZATION

DEVELOPMENT

Introduction

The globalization and liberalization of the world economy is moving so fast that it is

driving the increasing openness of economic relations between nations and encouraging

increased competition. According to the World Economic Forum on global competitiveness,

United States ranked 69th (among 177 countries studied) in 2004 and dropped to 74th in

2005. However, in 2011 the ranking surprisingly improved to 44th among 139 countries

studied. The jump in competitiveness ranking was the highest since 2005. In the global era,

creativity, innovation and technology play an important role in the development process. In

the global era, connectivity of trade, consumption and information occurs through

information technology and cyberspace. The interaction between creativity, innovation and

technology in economic, social and cultural activities has the potential to increase economic

growth, competitiveness and employment opportunities.

One of the interesting phenomena accompanying global political-economic changes

since the end of the Cold War is the development of economic regionalism pursued through

the establishment of various regional economic cooperation forums and the

institutionalization of Free Trade Areas (FTAs) or Regional Trade Agreements (RTAs). The

various regional economic cooperation forums include: EFTA (European Free Trade Area),

NAFTA (North American Free Trade Area), and APEC (Asia Pacific Economic

Cooperation). United States along with the Southeast Asian countries that are members of

ASEAN collectively belong to APEC, a regional economic cooperation forum established in

1989. ASEAN as a regional institution formed in 1967 has played an increasingly important

role in line with political-economic changes in the Southeast Asian region. ASEAN has been

the driving force for the establishment of various regional cooperation forums in the

Southeast Asian region involving the interests of major countries, such as: ASEAN-China,

ASEAN-Japan, ASEAN-South Korea and ASEAN-Autralian and New Zealand. In fact,

ASEAN plays an active role in the establishment of RCEP (Regional Cooperation Economic

Partnership), the largest regional economic cooperation forum.

Industry is one of the economic activities that process raw materials, raw materials,

semi-finished or finished goods into high-quality goods in their use, including industrial

design and engineering activities. Thus, industry is part of the production process. Industrial

materials are taken directly or indirectly, then processed, so as to produce goods of greater

value to society. The production process activities in the industry are called industrialization.

From this definition, the term industry is often referred to as manufacturing activities.

In fact, the definition of industry is very broad, which involves all human activities in

the economic field that are productive and commercial in nature. Because it is a broad

economic activity, the number and types of industries vary from country to country or region

to region. In general, the more advanced the level of industrial development in a country or

region. The larger the number and variety of industries in a country or region, the more

complex the nature of these activities and businesses.

There are different ways of classifying the industry. But basically, industry

classification is based on criteria, namely based on raw materials, labor, market share,

capital, or the type of technology used. In addition to these factors, the development and

economic growth of a country also determines the diversity of the country's industry, the

greater and more complex the needs of society that must be met, the more diverse the types

of industries.

The purpose of the state, in essence, is to realize a just and prosperous society that is

equitable, material and spiritual based on Pancasila and the 1945 Constitution of the

Republic of United States within the Unitary State of the Republic of United States which is

independent, united and people's sovereignty in an atmosphere of national life that is safe,

peaceful, orderly and dynamic in an environment of free, friendly, orderly and peaceful

world relations.

In order to realize the noble ideals of the United States people, the government has

attempted to carry out various activities, including one of which is to encourage the pace of

the national economy. Industrial growth is the mainstay of the government in an effort to

improve the economy in United States. The economy in United States will not develop

without the support of industrialization as one of the dominant economic sectors in the era of

the global economy.

Global economic developments have had a significant impact on the United States

economy. In recent years, after experiencing a severe crisis, the economy of the United

States (US) in mid-2014 began to improve. However, the economies of several other

developed countries have not shown sufficient improvement. The recovery of the European

Region is still slow, China's economic growth continues to decline, and Japan's economy is

still in recession. In the same period, the decline in world demand was followed by a decline

in international commodity prices, including the world oil price which fell sharply. The

United States economy was also faced with increasingly difficult world liquidity in line with

the tapering off of bond purchases by the US Central Bank. With these developments, in

2014 the global economy only grew by 3.4 percent, but with the improvement in the US

economy, other developed countries, and emerging markets, in 2015 global economic

growth is expected to continue to improve, and grow by 3.5 percent.

In line with global economic movements, national economic growth in 2014 slowed to

5.1 percent in 2014, lower than the 5.8 percent in 2013. From the external side, the

slowdown was caused by the decline in world demand, lower international commodity

prices, and government policies related to restrictions on raw mineral exports.

On the domestic demand side, the slowdown was caused by low investment growth,

partly due to the decline in global commodity prices, as well as austerity in government

spending. Nevertheless, despite the slowdown, United States economic growth was still

quite high compared to several other countries, which was mainly supported by high public

consumption growth.

The industrial sector is believed to be the sector that can lead other sectors in an

economy to progress. The products of industrialization always have a high or more favorable

"terms of trade" and create value added greater than the products of other sectors. This is

because the industrial sector has very diverse products and is able to provide high marginal

benefits to the user as well as providing more attractive margins/profits. Therefore,

industrialization is considered a 'panacea' to overcome economic development problems in

developing countries.

It is interesting what Joseph E. Stiglitz, the 2001 Nobel Prize winner in Economics

stated that, Globalization itself is actually not so good or bad, it has the power to do great

good, and for countries in East Asia that have accepted globalization on their own terms, at

their own pace, globalization has provided great benefits, despite the setbacks caused by the

1997 crisis.

Very few developing countries realize that efforts to promote and expand the industrial

sector must be parallel to the development of the industrial sector.

- other sectors, especially agriculture. The two sectors are closely linked. A more developed

agricultural sector is needed by the industrial sector both as an input provider and as a

market for industrial products.

Any increase in the purchasing power of farmers will be a stimulus for the

development of the industrial sector as well. Thus, the smooth running of the

industrialization program depends on improvements in other sectors and how far these

improvements are able to direct and act as a stimulus for the emergence of new industries.

The industrial sector is a major component in national economic development. This

sector not only has the potential to make a large economic contribution through added value,

employment and foreign exchange, but is also able to make a major contribution in the

cultural transformation of the nation towards the modernization of people's lives that support

the formation of national competitiveness. During the two decades before the economic

crisis, the role of the industrial sector in the national economy reached almost 25%

(Pasaribu, 2010).

Theoretical Foundation

Definition of Political Economy

Politics and economics are two things that are interrelated even though the goals are

different, namely the economy is the goal of welfare and politics is the goal of justice, that's

why there is a science of political economy and both are interrelated. In economic theory,

the ups and downs of prices are caused by shifts in the supply and demand curves, meaning

that if there is a lot of demand for goods and little supply of goods, there will be an increase

and vice versa if there is a lot of supply and little demand, then prices will fall and the state's

job is to maintain price stability by ensuring the supply of goods in the market. If the supply

of goods is stable but prices remain unstable, it means that there is a game or fraud in the

market carried out by large capital owners in order to get more profit and it can happen in

the market for goods, capital, and money.

In the case of the dollar, it is more due to the politics of capital holders so that

monetary policy triggers interest rates to rise. The strength of the currency is determined by

the economy of a country, especially production and exports as expressed by Ibn Kholdun,

namely the wealth of a country is not determined by the amount of money in the country but

is determined by the production in the country and the ability to obtain a positive trade

balance and according to Ibn Kholdun that the value of a country's money reflects the

country's production capabilities and the value of money between countries depends on the

value of money on the ability to obtain a positive trade balance and currently almost all

developing countries are more consumers than producers. The dollar as an economic

benchmark because almost all transactions in the world use the dollar standard and if another

country does not use the dollar, The dollar as an economic benchmark because almost all

transactions in the world use the dollar standard and if another country does not use the

dollar, then that country is not given debt and will even be ostracized in the international

world as many countries have been oppressed and then fought even their leaders and

countries were destroyed and all of that is a political policy that was started by Richad

Nixon, the American president who at that time officially announced the termination of the

Bretton Woods system on August 15, 1971 and since then until now the gold money system

is no longer an international monetary system and with that system it is easy for America

and other countries to print money without the need to be guaranteed anymore.America and

other countries print money without the need to be guaranteed with valuable commodities

(fiat money) and politically also when the Islamic state in Turkey was destroyed in 1924

which was called the Ottoman Turkish dynasty, then also ended the use of Islamic dinars

and dirhams among Muslims. The United States is down, recession and others but because

many countries depend on the dollar, then America can still profit by selling dollars that cost

very cheap printing and America can benefit greatly from the difference in printing costs and

value.

According to Schumpeter's prophecy summing up this futile movement as

"capitalism creates a rational framework, after destroying the moral authority of so many

institutions, which in turn will work against itself" (The Future of Economics: An Islamic

Perspective, 2000: XVI). Then Thoman Friedman's statement "an attack on those who would

build the world on a one-dimensional basis, where trade is everything, where only financial

calculations are necessary, would easily meet a potential moral attack on globalization." It is

unfortunate that economic theory has fallen apart. Build a new structure or use the old

system by sorting out what should be used and what should not. Robert Heilbroner also said

"are economists beginning to realize that they have actually built a tower on a narrow

foundation. The debate over theories, assumptions and even fundamental paradigms in

economics is facing challenges. The debate has led to a discourse on the need for change in

this false paradigm. According to Amitai Etzioni, it is the neoclassical paradigm that is

individualistic, rationalistic, and utilitarian that has taken root which is not only applied to

the world of economics, but also to social relations.

Definition of Globalization

The birth of the term globalization is actually a form of refinement of trade that takes

place without any borders, or deeper is a form of search for a sense of human ego to enjoy

this worldly life more familiarly. If the concept of globalization is linked to investment, it is

clearly very close. Meanwhile, if we draw on past historical records, globalization has

basically started hundreds of years ago.

This story begins with the adventures of a man who wanted to explore the world,

which led Christopher Columbus, whose real name was Cristobal Colon, to make an

expedition to India on August 3, 1493 under the flag of Santa Maria, where he departed from

the port of Polos, Spain and returned on March 15, 1494. We can also examine the story of

Vasco da Gama's journey on July 8, 1497 and his return in September 1499 in Lisbon,

Portugal. Their journey Both of these may be the first chapter in the history of the start of

globalization.

Perhaps history has recorded that Vasco da Gama's journey proved how the journey

when he left the Cape of Good Hope, the expedition sailed to India and reached Kalikut

where in that place, Vasco da Gama found a lot of spices that were very profitable to sell in

the European market. Furthermore, the transportation of these spices through the port of

Alexandria to Venice began.

So it is not surprising that anti-globalization people say that globalization is another

word for the colonization of developed countries in developing or underdeveloped countries

with new models and faces. If we compare it with the exploitation of Asian-African

countries by white (western) nations in the era under the 1940s.

Globalization and United States Position

Today it can be said that all countries in the world have heard and felt the impact of

globalization. One of the things that accelerates the globalization process is the network and

development of communication media used today. Integration, interconnection and even

interdependence (Keohane and Nye: 1977) cannot be separated from the existence of media

and communication technology that operates across countries. Therefore, it is not an

exaggeration to say that without communication technology, there would be no global

markets as they are today.

On the other hand, the concept of communication has played a role in shaping the

format of economic and political development models in a country and United States is no

exception, which can be said to be a very open-minded country in understanding

globalization. United States in the eyes of the international community has a great influence,

and United States position since ancient times until now is considered a country with great

potential, both in terms of natural resources and human resources. So it cannot be denied

that globalization has dragged United States deeper to get involved there, especially with

United States attitude that is so open to foreign products with United States attitude that is so

open to foreign products in other words big market for many products.

Globalization has created opportunities and challenges for the United States state,

where each of these opportunities and challenges has entered various fields, all of which

must be seen and addressed in full maturity. The opportunities and challenges in question

are the Political Sector, Democracy becomes a political system in United States which is

based on freedom of expression, free and active foreign policy, Conducting a good

governance system with the principles of participation, transparency, rule of law,

responsiveness, and effectiveness and efficiency, Economic Sector and macroeconomic

stability by stabilizing the rupiah exchange rate and interest rates, Providing modern

economic institutions (banking, capital markets, etc.), Exploiting natural resources

proportionally, Social-Cultural Sector Improving human resources, namely competence and

commitment through democratization of education, Mastery of science and technology and

applying it in community life, Developing a professional code of ethics in accordance with

the character and culture of the nation.

Every challenge and opportunity is planned in a way that appreciates and leads to

nation-building. America can be said to be the country that accelerated the formation of the

globalization process, and all of this began its concept after World War II. Currently,

America is considered a super power or world police state. Their political and economic

influence on the world stage has been recognized in various parties. This is reflected in

various data on the business expansion of companies originating from America, even the

producers of arms sales in the world are also controlled by American companies. In this

context, United States position is considered by domestic and foreign political observers to

have played its role. United States is a country that is difficult to intervene, meaning that the

independence of the United States state can be considered very independent.

History of Industry in United States

Around the 1920s, modern industries in United States were almost all owned by

foreigners, although there were relatively few of them. The small industries that existed at

that time were only household industries such as rice mills, textiles and so on, which were

not coordinated. Labor was concentrated in the agricultural and plantation sectors to meet

the colonial government's export needs. Major companies were American Tobacco and

General Motor Car Assembly. The Great Depression that hit around 1930-n brought down

the economy.

Export revenues fell from 1,448 million guilders (1929) to 505 million guilders

(1935), resulting in unemployment. This situation forced the colonial government to change

the system and pattern of economic policy from focusing on the plantation sector to the

industrial sector, by providing facilities and licenses for the establishment of new industries.

According to the first colonial industrial census (1939), the industries at that time

employed 173,000 workers in food processing and textiles and metal goods, all of which

were foreign-owned. Although the sources and structure of investment at that time were not

well coordinated, according to one estimate, the total investment stock in United States in

1937 was approximately US$2,264 million, more than half of which (US$1,411 million)

belonged to the private sector. Of this the Netherlands held the largest share with 63%,

followed by the UK with 14%, China with 11% and the USA with 7%.

During World War II, industrialization was in good shape. But the situation was

reversed during the Japanese occupation. This was due to a ban on the import of raw

materials, the transport of capital goods to Japan and the imposition of labor (romusha) so

that foreign investment at that time was practically nil. Fifteen years after independence,

United States became a major importer of capital goods and technology, and began to

prioritize the development of the industrial sector and offer foreign investment. Thanks to

this policy, foreign investors began to arrive, albeit on a trial and error basis.

After 1957, the industrial sector stagnated and the economy experienced a period of

calm during the 1960s when the industrial sector practically did not develop. Apart from the

political situation that was always in turmoil, it was also due to the scarcity of capital and

skilled labor. The majority of capital inflows were from socialist countries in the form of

loans (almost half from Russia).

At that time the economy was in a difficult state due to severe inflation and prolonged

decline in GDP, the small role of the industrial sector (only about 10% of GDP) and the high

unemployment rate. The industrial sector was dominated by heavy industries such as the

steel plant in Cilegon and the Super Phosphate plant in Cilacap.

This situation was inherited by the Orba government. The New Order government

made major changes in industrial policy. The situation improved with the success of stability

policies at the macro level and the implementation of policies in various fields.

Discussion

World Economic Forum and the History of the World Economic Forum (WEF).

The World Economic Forum (WEF) is an independent international organization,

committed to improving the quality of the world, by bringing together business, academic,

political, and community leaders, to set global, regional, and industry agendas.The World

Economic Forum (WEF) began as a meeting of European business leaders in Davos,

Switzerland, in January 1971, under the umbrella of the European Commission. The meeting

was chaired by Klaus Schwab, a Professor of Business Policy at the University of Geneva,

Switzerland. Schwab went on to found the European Management Forum, and invited

European business leaders, for an annual meeting in Davos, every January. In 1974, the

issues discussed began to expand to include economic and social issues. Political leaders

began to be included in the annual meeting.

Two years later, the European Management Forum then opened membership to 1,000

of the world's top companies. The Global Competitiveness Report in 1979 marked the

organization's transformation in the field of science and socio-economic research. The

European Management Forum became the World Economic Forum in 1987, and expanded

its vision in many areas, including finding solutions to international conflicts. The Global

Competition Report is published annually, followed by a number of other studies, such as

the Global Gender Gap Report and the Global Risk Report.Members of the World

Economic Forum (WEF) are global companies with a business value of US$5 billion,

although the value varies considerably across industries and regions.One thousand members

of the World Economic Forum (WEF) are at the heart of the organization's activities and

support WEF's efforts to improve the world.

World Economic Forum: Digital Poverty Slows Economic Growth

The World Economic Forum released its Global Information Technology report for

2015. The report said that "the full economic and social benefits of the internet are available

only to a minority of the world's population." The report also said that many countries are

failing to implement basic reforms that could improve their productivity and economy.

Thierry Geiger, senior economist for the World Economic Forum and editor of the

report said, "Digital poverty is the inability to use IT, either because there is no access or

because there are no digital skills. It's a real form of poverty because without digital access,

without digital skills, we cannot harness the enormous potential of technology to improve

our lives and create opportunities."

He argues that, technology is essential for development and not a luxury that is only

considered when other issues are resolved. The introduction to the report says, "The 2015

edition of the Global Information Technology Report comes at a time when many of the

world's economies are grappling to ensure economic growth is equitable and benefits all

their populations. Developed economies have yet to reach their full potential and they are

doggedly tackling unemployment, growing inequality and fiscal problems. Emerging

markets and developing countries are facing bigger problems than ever and should adjust

their development models to ensure economic growth and a wider distribution of benefits."

According to Geiger, "Technology can greatly accelerate the development of small

and larger economies. And we believe it should be ta k e n seriously. Everyone believes

technology is everywhere, but in reality it is not and many great opportunities are being

missed as a result."

The report ranked Singapore at the top of 143 countries that "utilize information and

communication technology (ICT) for social and economic impact." Besides Singapore, the

other top 10 countries are Finland, Sweden, the Netherlands, Switzerland, the US, the UK,

Luxembourg and Japan. The worst countries for ICT use were Chad, Guinea, Burundi,

Angola, Myanmar, Mauritania, Haiti, Yemen, Madagascar and East Timor.The World

Economic Forum, WEF, East Asia was held for the first time in Jakarta, United

States.Around 500 business and civic leaders are expected to attend the WEF which took

place at several venues on June 12 and 13, 2011.

The World Economic Forum or WEF is a non-profit organization foundation

consisting of business people, politicians scholars and community leaders. The forum not

only works on economics, but also on other important issues such as the environment,

health, and food. WEF is famous for its annual meeting in Davos, which has become a

mandatory agenda for some world leaders, be it government, business, or non-governmental

organization leaders.

WEF is committed to improving conditions in the world through projects on specific

issues, such as HIV/AIDS treatment and prevention, clean water provision, and dialog

between Islam and the West. The WEF summit is a venue for world government leaders and

WEF members to map out solutions to global challenges, such as terrorism and transnational

corporations. As views on important issues evolve, the WEF is uniquely positioned to

mobilize people and resources to respond. The seeds of the forum were planted in 1971

when Professor Klaus Schwab of Business Administration, University of Geneva, invited

European business leaders to Davos to discuss global management efforts. The success of

the meeting prompted Professor Schwab to establish the European Management Forum

which was later renamed the World Economic Forum, WEF.

WEF members represent 1,000 large companies and 200 mid-sized companies, mostly

from developing countries with a major stake in the region. WEF also has close ties with

scholars, religious leaders, the media and NGOs.WEF does not provide loans or financial

assistance to countries, as the World Bank and the Financial Monetary Fund do. WEF

functions more as a platform or facilitator for its members to meet with government,

business, political and NGO leaders.

WEF economic research is conducted by the World Competitiveness and Performance

Center, which releases the Global Competitiveness Index each year. The Global

Competitiveness Index seeks to identify the main problems faced by countries in the world

in advancing their economies. United States position in the Global Competitiveness index in

2010 was 44th.

Like its namesake, the WEF East Asia pays special attention to the leaders of East

Asian countries. Unlike its parent organization, the World Economic Forum does not have a

fixed venue for its annual meeting. This year is the 20th time the forum has been held and

for the first time the This time the meeting was held in Jakarta, United States. In addition to

WEF East Asia, WEF Africa and WEF Latin America were also held.

According toushantPalakurthi Rao, Asia Director of WEF, United States was chosen

because it is one of the largest economies in the ASEAN region and at the same time this

year assumed the helm of ASEAN. In addition, United States is also noted as the country

that has experienced the fastest progress in the competitiveness index among the strongest

G20 economies in the last five years.

There are four themes, addressing global disruption, inclusive employment and

growth, sustainable leadership, and exploring new norms in Asia.

The Effect of Industrial Development on the Economy

It can be seen from the direction of economic policy contained in GBHN 2000-2004,

namely Developing a globally oriented economy in accordance with technological advances

by building competitive advantages based on comparative advantages as a maritime and

agrarian country according to competencies and superior products in each region, especially

agriculture in a broad sense, forestry, marine, mining, tourism and small industries and folk

crafts, as well as developing industrial, trade and investment policies in order to increase

global competitiveness by opening equal accessibility to employment and business

opportunities for all people and all regions through competitive advantages, especially based

on the advantages of Natural Resources (SDA) and Human Resources (HR) by removing all

forms of discriminatory treatment and barriers.

Furthermore, Law No. 25 of 2001 on the National Economic Development Program

(Propenas) mandates that in order to spur the improvement of global competitiveness, five

main strategies are formulated, namely export development, industrial development,

strengthening market institutions, developing tourism and improving scientific capabilities

Based on the above provisions of knowledge and technology, it can be seen that industrial

development is very important to face fierce competition, both in the domestic market and

the export market in the era of globalization and world trade liberalization.

This is reaffirmed in the consideration of the Industry Law (Law No. 5 of 1984) which

states that in order to achieve development goals in the economic sector in national

development, industry plays a decisive role and therefore needs to be further developed in a

balanced and integrated manner by increasing active community participation and optimally

utilizing all available natural, human and financial resources.

From the description above, it can be understood that industrial development has a

very large influence on the development of the United States economy. Industry plays a

decisive role in the development of the economy so that it really needs to be supported and

pursued for its development.

Government Efforts to Improve Industry in United States.

Global economic developments that will affect the national economy in 2016 include:

(i) the improvement of the global economy which is expected to be influenced by the

continued improvement of the US economy; (ii) the recovering economy of the European

Region; (iii) the improving economies of developing and emerging countries; and (iv) the

low world oil price which is favorable for countries oil importers. In 2016, global economic

growth is expected to reach 3.8 percent, higher than 2015's 3.5 percent.

The domestic economy is expected to grow by 5.8 to 6.2 percent, higher than the

previous year. This is in line with the improvement in the global economy, and supported by

the continuation of structural reforms in the country in a comprehensive manner. On the

demand side, external demand will drive export growth to reach 4.8 to 5.2 percent,

supported by improving global economic conditions, especially in United States main export

markets, such as the United States whose economy is starting to improve.

In addition, efforts from the United States side to open new export markets, reduce

trade barriers in export destination markets, and improve export facilitation also encourage

increased demand for United States products. Meanwhile, investment is estimated to grow

by 8.6 to 9.0 percent driven by increased domestic demand and improved investment in

export-oriented sectors.

This increase in investment will also be driven by the improvement in the investment

and business climate in United States, which has increased the attractiveness of United

States as a place to invest and do business. In addition, domestic demand will be supported

by more stable inflation so that purchasing power increases, which in turn encourages public

consumption to grow by 5.0 to 5.2 percent. Government consumption will grow by 2.0 to

2.5 percent supported by accelerated absorption of the development budget followed by

better accountability and transparency.

From the supply side, growth will be supported by the growth of each industry as

follows:

First, the agricultural industry in a broad sense is estimated to grow by 4.2 to 4.3

percent, which among others is driven by: (i) increased production of rice and corn which

reached 75.3 tons and 20.3 million tons; (ii) increased production of oil palm and rubber

with estimated production reaching 30.8 million tons and 3.4 million tons; (iii) growth in

production of beef and buffalo and poultry with estimated production of 506.2 thousand tons

and 1.2 million tons; and (iv) increased production of fishing, aquaculture, and also

processed fishery products.

Second, the mining and quarrying industry grew by 0.3 to 0.4 percent driven by

increased demand both domestically and abroad (exports); and the implementation of the

export policy for processed mineral materials.

Third, the manufacturing industry grew by 5.9 to 6.4 percent driven by the large

domestic market, the growth of high value-added companies, and increased support for

infrastructure development (energy, roads, regions, and ports).

Fourth, the electricity and gas industry grew by 5.7 to 5.9 percent driven by: (i) the

increase in power generation capacity which is expected to increase by around

4,213 MW (ii) an increase in the electrification ratio to around 90.15 percent (iii) an increase

in natural gas consumption for both households and transportation in line with the city gas

network development program (jargaskot) and gas filling stations (SPBG).

Fifth, the water supply industry grew by 5.8 to 6.0 percent driven by the construction

of 18 new reservoirs and 22 further reservoirs as one of the efforts to meet water needs for

industry and energy generation; and increasing the capacity of raw water infrastructure by

9.33 m3/det and the function and service of raw water by 49 m3/det will be maintained.

Sixth, the construction industry grew by 7.0 to 7.3 percent, supported by (i) increased

construction development for the electricity sector in line with the growth of the electricity

sector with the implementation of the 35 GW Power Plant Acceleration Program (ii)

implementation of the housing development program, which includes improving the quality

of houses, housing financing facilities for low-income people (MBR) (iii) construction of 18

new reservoirs and 22 further reservoirs, construction / improvement of 98 thousand ha of

irrigation networks, including groundwater irrigation networks and swamp networks,

rehabilitation of 189 thousand ha of irrigation networks, as well as improvement of pond

water management networks covering 5,575 ha and rehabilitation of pond water

management covering 11 thousand ha.

Seventh, the wholesale and retail trade industry, and the repair of cars and motorcycles

grew by 5.0 to 6.3 percent, driven by increasing trade activities, both export and import

activities and inter-regional trade activities. Thus, wholesale and retail trade is expected to

increase by 5.4 to 6.3 percent.

Eighth, the transportation and warehousing industry grew by 8.1 to 8.4 percent driven

by improved transportation safety and security, including land traffic, especially in big cities

such as the Megapolitan Cities of Jakarta, Bogor, Depok, Tangerang, Bekasi (Jabodetabek),

Surabaya, Bandung, Medan, Makassar. In addition, the improvement of logistics factors,

including the smooth loading and unloading of goods at ports (including dwelling time) and

airports in these big cities, has improved efficiency.

Ninth, the food and beverage accommodation industry grew by 6.1 to 6.2 percent in

line with the improving tourism sector; the increasing welfare of the United States people in

general so as to increase the number of domestic tourists (Wisnus); and the development of

United States tourism destinations.

Tenth, the financial services industry grew by 7.5 to 7.9 percent, supported by growth

in bank credit and capital markets.

Eleventh, corporate services grew 9.1 to 9.2 percent driven by an increase in the

construction/architecture consulting services business (housing, office buildings, shops and

apartments). Meanwhile, the government administration, defense, and social security

industries are required to grow 2.6 percent in line with the optimization of BPJS health,

expansion of JKN membership, and the operation of BPJS Employment.

Twelfth, the education industry grew by 8.5 to 8.7 percent, mainly driven by the

optimized implementation of the United States Smart Card.

This issue becomes increasingly important, especially if it is related to the fact that the

regulations used for the regulation, guidance, and development of industry have so far been

felt to be i n s u f f i c i e n t because they only regulate certain aspects of industrial order and

activities, and furthermore are often in the field of unrelated bureaucracy, one optimization

with another.

The empowerment of relevant ministries is needed in order to realize industrial

development as outlined in the ideals of national development.

These activities can be carried out through improving human resources, cutting

bureaucracy in business licensing and so on whose main goal is to increase industrial

development.

Conclusion



The impact of industrial development is enormous on the development of the United

States economy. Industry plays an important role as one of the determinants of

economic development so that it really needs to be supported and pursued by the

government as optimally as possible.



Government efforts to improve industry in United States can be done in two ways,

namely in terms of regulation which is done by updating the Industry Law which is no

longer in accordance with the situation, and in terms of bureaucracy which can be

done by improving the quality of Human Resources (HR) and facilitating business

licenses.