SLEMAN - The Ministry of Industry is determined to continue pushing the industry downstream because the activity is aimed at increasing the added value of domestic raw materials. It was conveyed by the General Director of Chemical and Pharmaceutical Industries, Ministry of Industry, Muhammad Khayan at the State Defence Week Webinar held by UPN "Veterans" Yogyakarta (UPNVY), Tuesday (5/19). He said that Indonesia has a wealth of natural resources that can be processed as industrial raw materials. Therefore, the government is optimistic about the industry downstream which are considered to be able to maintain the national economy strength.

Khayan explained that Indonesia's economic growth was at 5.03, but it has fallen to 2.97 now. This is the impact of Covid-19's impact.

"Hopefully we can improve it the end of this year, so it is not negative. Some countries have zero or even minus economic growth," he said.

Despite the pandemic, the economic growth in the pharmaceutical and chemical industries is still high. Yet, this industry, Khayan said, still depends on imported raw materials. Therefore, it needs to be encouraged to increase the added value of pharmaceutical and chemical basic ingredients with the downstream process.

He also conveyed that the current industry's aspirations need to be supported by the use of new technology, including the application of the industrial era 4.0 or digitalization to boost productivity more efficiently.

A similar sentiment was also conveyed by Hens Saputra, Director of the Center for Energy Resources Technology and Chemical Industry, BPPT. According to him, technological innovation can increase the added value of a product. Technological innovation can enhance the nation's competitiveness and ultimately create independence.

Hens said that the current paradigm of value added creation has changed. We focused on selling raw materials and using lots of cheap human resources in the past, but it's different now. The creation of added value today is the mastery of technology and innovation.

"The processing and creation of natural resources added value preserves an environmental sustainability. Innovation technology is a mainstay for the creation of added value," Hens said in his presentation.

In addition, the competitive advantage factor is through intellectual capital, social capital, and relational capital.

"We must cultivate and create added value. Yet, we need technology to process it. It is hoped that we can lead to the technological independence. We must synergize all elements of the nation," said the UPNVY Chemical Engineering alumni. (wwj / PR)