RI'S SERVICES SECTOR STILL LAGGING BEHIND OTHER COUNTRIES' : MINISTER

Jakarta, Jan 14 (ANTARA) - Industry Minister MS Hidayat said Indonesia's services sector was still lagging behind those of other countries.

"Our services sector is still one step behind those of other r countries," said MS Hidayat in Jakarta Thursday after opening s discussion on "Growth and Efficiency of Indonesia's Services Sector."
He said a World Bank survey had shown the service sectors of such countries as Australia and the Philippines were far more advanced than Indonesia's.

Yet, he said, the services sector played an important role in economic growth.

"The services sector makes things more efficient therefore we must improve the performance of our telecommunications, health, and education sectors," he said.

He said services sector in Indonesia should be encouraged to be more competitive in the future.

"I want to make services one of the country's leading sectors," he said.

The minister said service industries facilitated transactions, manufacturing output, and connected the different stages in econmic processes.

The services sector contributed more than 47 percent of Indonesia's GDP in 2008 and absorbed more than 40 percent of the work force, he said.

Moreover, in anticipation of the negative impact of the Asean-China Free Trade Agreement, improvement of the quality of the services sector was essential to reduce the production costs of goods and services in Indonesia , he said.