ANALYSIS ON THE INCREASING VALUE ADDED OF LOW TECHNOLOGY INDUSTRIES FOR INDONESIA ECONOMIC DEVELOPMENT

• Main Author: ANDRIYANTO (NIM : 23410034), ACHMAD
• Format: Theses
• Language: Indonesia
• Online Access: https://digilib.itb.ac.id/gdl/view/20689
• Institution: Institut Teknologi Bandung

Through out it's economic development, Indonesia has been capitalizing in high technology despite the lacks in both social capital and infrastructure standard. Based on this previous problems, actions need to be taken to improve Indonesia's economic development without the need to utilize high technology. One of the effort to do as such is to increase industrial value added. To analyze the increased in the low technology industrial value added, in both process and non-process industry, Hayami method is applied. <br /> <br /> <br /> By improving the industrial level to a level higher than it previous state and restructuring the process in low technology industries, such as textile, textile product, and oil palm process, the value added for each worker can be raised. The value added per worker indicates the country productivity. The improvement mentioned in the industrial process sampled in this study is the production of Ramie yarn/fibers, restructuring of polyester yarn and fiber machinary, restructuring of woven product machinary, restructuring of finished fabric manufacturing machinary and production of fat powder. <br /> <br /> <br /> Based on the study in six sampled commodities, the median for the increased value added for each workers are Rp. 6,618,241.-. If this numbers are implemented to every workers in Indonesia’s low technology industries, it result in increasing GDP Rp. 20,034,607,607,536.- or 0.24% higher compared to GDP in 2012. GDP per capita are increased by 13.38% compared to previous year (2012). This study also providing a significant evidence of potential demands for the proposed product, both in domestic and international market.