Riffrag Business & Finance Report

At the time our country is struggling to boost the rupiah against foreign currencies, on the other hand, China actually experiencing pressure from the world in order to float its currency pegged assessed is too low. Fixing the value of the yuan has done this since the protests of 1994 because it was considered as the main cause lopsided price Chinese products in the world market (Sarnianto 2004). Concern that it is reasonable to see almost be said labeled products made in China medominasi world markets starting from just a pin to a sophisticated electronic device.

Many factors are pushing the Chinese economy that could be like this now, where the economic growth above the average 7% per year has led China as one of the world economic giant. Factor exchange rate certainly is not the only cause of the products with the largest population country in the world able to prevail over the world market. This of course is understandable considering that only factors that Indonesia should also be able to take mamfaat of the rupiah is very sad.

One of the other things more important than whether it is the factor that caused the Chinese could be so productive to be able to produce quality products that are accepted by the world market. Countries G-7 have even openly embrace China currently ranks fourth in world trade, under the United States, Germany and Japan to share and talk in their forums (People’s Mind, October 2, 2004). It turned out that apart from the flow of foreign capital and high technology, which was very interesting from the Chinese experience is the pivotal role played by Small and Menegah (SMEs) and local private business known as Township and Village Enterprises (TVEs) in support of its export strength.

Important Role for China’s economy TVEs

Contribution of TVEs to China’s economy can not be underestimated. TVEs which originally was the development of rural industries are encouraged by the Chinese government. If in 1960 there were only about 117 thousand, but since the reform in 1978 the number experiencing spectacular growth to 1.52 million. When viewed from the side of employment, TVEs in the late 1990s had taken in half of the workforce in rural China.

Although these developments could TVEs have ups and downs and not evenly distributed throughout the territory of China, but on average experienced a very impressive growth. Production of TVEs increased by an average of 22.9 percent in the period 1978-1994. Nationally, the output of TVEs in 1994 reached 42% of the total national production. As for the volume of exports, TVEs contributed one third of the total export volume of China in the 1990s (Pamuji, 2004).

Viewed from the side of the trade figures on paper is still apparent that we are still a surplus of exports compared to China. According to data obtained from the Ambassador of Indonesia in China, that precisely until August 3, 2004 viewed from the perspective of China’s foreign trade, Indonesia is currently the export destination country ranked 17th with a value of 2.66 billion dollars or 1.03 percent of the total export value of China reached 258.21 billion U.S. dollars. Indonesia is also a country of origin of imports to China with 17 for the exports value of 3.44 billion dollars (Osa, 2004).

But in reality on the ground was that the goods produced in China looks everywhere. We do not turn a blind eye that many products from countries that signed the panda illegally to Indonesia so as not to participate officially recorded in the report. But the explanation of the Chairman of Kadin Indonesia China Committee, Sharif Sutardjo Cicip perfect sense. As quoted from an interview with the Sinar Harapan explained that Indonesia’s exports to China is huge, but most of the raw material with a number of items is very small, only about 15 items such as oil and gas, palm oil, rubber, wood, and others. While we import from China hundreds of items, ranging from pulp, agricultural products, equipment to motorcycles and cars. Most of the companies that produce products that everyone in China is private industry, SMEs or TVEs (www.sinarharapan.co.id/ ekonomi/industri/2003/1224/ind2.html).

This fact was contrary to the state of our SMEs are less empowered but has great potential. The number of SMEs covering 99% of the total industries in Indonesia and absorb about 56% of the total number of Indonesian workers (Rochman, 2003). It is very necessary for us see what efforts have been made by the Chinese government to promote private industry especially SMEs, since SMEs actually we also have the ability. This was evident at the time of monetary crisis precisely the SME sector can survive.

The Chinese government efforts started in the Old

What do the Chinese now enjoy from the industry, especially TVEs is the result of many years. In 1986, led by the State Science and Technology Commission (SSTC) of China Torch Program introduced which aims to develop discoveries and research by universities and government research institutions for commercialization purposes. The results obtained then followed up by a New Technology Enterprises (NTEs). Next SSTC developed 52 high-tchnology zones similar to the research park in the United NTEs up on this (Mufson, 1998). Although it is NTEs large companies but the future bersakala have a role in developing the technology base for small industries and medium.

The Chinese government then still with the SSTC issued a policy to support the so-called TVEs The Spark Plan. This policy consists of 3 main activities are coupled. First, provide training for village youth 200,000 annually in the form of one or two techniques that can be applied in the area. The second activity carried out by research institutions at the central and provincial levels to build the equipment ready technology in rural areas. And the third is to establish a quality 500 TVEs as a pilot project (Pamuji, 2004).

The Chinese government is also trying to put myself as a servant by providing all the necessary requirements by the industry. Starting from the most essential thing in starting a business licensing bureaucracy that is easy and fast, in an article which said that to start a business in China just takes waiting for 40 days, compared with Indonesia, which took 151 days to take care of business permit ( www.suaramerdeka.com/harian/0503/01/eko07.htm).

Supporting infrastructure is not out to spur exports prepared by the Chinese government seriously. When in 1978 the total length of highways in China, only 89,200 km, then in 2002 increased sharply to 170,000 km. For the port, at least this time the Chinese have freight port 3800, 300 of whom can receive a capacity of 10,000 MT vessels. While for the purposes of electricity in 2001 alone China has been able to provide for 14.78 billion kwh, and the preparation has been done to build the world’s largest hydroelectric power which can be planned already in 2009 (House, 2005).

HR Best For Entrepreneurs

In terms of human resources for the Chinese business world is not half-hearted in directing the best people to be a powerful businessman. Since the 1990s, China has sent thousands of the best young workers to learn to some of the best universities in the United States, like Harvard, Stanford, and MIT. At Harvard alone, China has sent thousands of students to study an open economic system and policy of western governments, even though China is still applying the economic system is relatively closed. As a result, China now has a trade network that was established with the United States, even the status of The Most Preferred Trading Partner (Kardono, 2001).

The Chinese government was also encouraging the overseas Chinese scholars and professionals, especially those that are and have worked in research centers and MNCs in the field of technology throughout the world to want to go home and open a new company in China. Former experts from Silicon Valley and IBM, for example, would also be expected to facilitate the opening of business networking with MNCs other ex-employer that spread around the world (www.mail-archive.com/bhtv @ paume.itb.ac. id/msg00042.html). Of course, persuasion is done by the lure of convenience and facility to start a business, such as tax incentives, ease of licensing, and capital injections.

Can Indonesia Must Take Lessons from China

We should learn from the success of China to develop the business and industry. This is much better than just grumbling to see the Chinese products are flooding the domestic market. Rampant Chinese products with cheap price and quality must be seen not only as a threat, but also as a trigger so that Indonesia can move toward improvement. On this occasion the authors have limited capacity to try to formulate some feedback in the form of steps should we take to do with what has been done and achieved by China.

First, that we must try to assess China’s policies in the economy, especially in advancing the business world. After which it can be formulated and appropriate for application in Indonesia. This is considering the circumstances, background, and the Chinese culture that is not the same with Indonesia.

The second step can be taken is to strengthen our ties of cooperation with China, not only in economics but also in other fields deemed important. In the economic and security for example by making a memorandum of understanding on cooperation in the handling of smuggling in both countries. Other forms of such cooperation is to conduct industrial synergies between the two countries. As I walked in the candle industry between Indonesia and China, where there are not written in kesepakatn distribution industry focus, with the upstream industry and the division handled Menegah Indonesia, while the downstream is held by China.

Third, is to create an entrepreneurial culture in Indonesia. This can be done by imitating the Chinese government steps with its policies in stimulating the emergence of new entrepreneurs. However, if viewed more closely, in fact the main problem in Indonesia lies in the paradigm of thinking people. In Indonesia, almost nothing we see a great desire among the educated to become entrepreneurs.

The reason could be due to lazy and afraid to take risks to fight from zero if the entrepreneur. Our society is generally sympathetic greater professions which practically looks exclusive, such as doctors, accountants, and lawyers than entrepreneurs. This situation is more aggravated by our education system tends to ignore the lessons of entrepreneurship and leadership. This is in contrast to the entrepreneurial culture that is very thick Cina.Langkah fourth of the population is by maximizing the role of academic researchers to support the business world. So far, among the many obstacles our businesses, especially SMEs, the greatest is from the technology and methods that are efficient and far behind from its competitors abroad. For that researchers would want to come down from the ivory tower to help research industries in Indonesia. It’s time to do research could be more down to earth so that it can also be enjoyed by small industries and medium.

Closing

Such discussions are conducted by the author related to the business climate in China which is one of the main elements driving the Chinese economy to be transformed into a giant world economy. Although not all fit applied in Indonesia, but at least some of the steps that China has proven to be successful it would not hurt to be followed and practiced in Indonesia.

All the components ranging from governments, academics, researchers, businessmen, and common citizens have to participate and think and work hard to find the best solution to solve the problems that we experienced this beloved country. Each party should try to give the best fit to the field and he has the ability of each. End the authors hope this simple article can be useful