Dahlan Urgens Banks To Extend More Crwedits To Industries

Jakarta, Nov 11 (Antara) - State Enterprises Minister Dahlan Iskan has urged banks to extend more credits to the industrial, rather than the trade sector, to revive the country`s industries. "I have asked banks to help build an economic foundation by focusing on the industrial sector. I also participated in efforts to revive industries," he said at the Mandiri Investment Forum 2013 here on Monday. He noted that an increase in the portion of credits to the industrial sector could help revive the nation`s economy, as was done during the New Order era. Speaking before some 300 attendants, Dahlan, who has successfully built Jawa Pos media business empire and led state-owned electricity company PT PLN, explained about problems faced by Indonesia during the New Order era. "At the beginning of the administration of Pak Harto (former president Soeharto) a lot of businessmen became traders, but 10 years later they turned into industrialists. Many businessmen who became traders then set up factories. This was good for the nation. Industries made us strong," he said. He added that industrialization could not be separated from improving the nation's economic conditions at that time. The industrialization process, however, ended following an economic crisis in 1988. "At that time, riots flared and the rupiah exchange rate plummeted. Due to these conditions, many industrialists moved on to become traders," he said. As a result, he added, industries collapsed and traders preferred selling imported goods, and the country`s economy developed a large deficit. "Many Indonesian people have become traders again, preferring importing products rather than producing them. This is what has weakened our economy," he said. In view of that, he said Indonesia has to revive its industrial vision so that it can overcome economic problems. "Through industrialization, the nation`s economy could be maintained to grow above 6 percent," he said.