Universitas Muhammadiyah Yogyakarta Undergraduate Conference Proceeding
Vol. 3 No. 1 (2023): Crafting Innovation for Global Benefit

Transforming Indonesia's Informal Sector: The Role of Industrialization in Manufacturing Industry

Krisnadi, Muhammad Faiz (Unknown)



Article Info

Publish Date
15 Nov 2023

Abstract

This study analyzes the need for Indonesia's massive industrialization in the manufacturing industry to address the persistent issue of informal employment. Indonesia's economy depends heavily on the informal sector, leading to a high unemployment rate and limited social protection. This study aims to explore the manufacturing industry's potential to create more formal employment opportunities and reduce informal employment. The objectives include analyzing the current state of the manufacturing industry, identifying the challenges and opportunities for growth, and proposing policy recommendations to promote industrialization. A qualitative research approach was used, with data collected through literature reviews, government reports, and library research. The study found that the manufacturing industry in Indonesia has excellent growth potential, given the country's large population, natural resources, and strategic location. However, several challenges include inadequate infrastructure, limited skilled labor, and bureaucratic hurdles. The proposed policy recommendations include improving infrastructure, providing vocational education and training, and streamlining regulations to attract foreign investment. The significance of this study lies in its focus on the potential of the manufacturing industry to create formal employment opportunities and reduce informal employment, which can contribute to poverty reduction and economic development in Indonesia. The study's novelty lies in its comprehensive analysis of the challenges and opportunities for industrialization in Indonesia and the proposed policy recommendations to address them.

Copyrights © 2023






Journal Info

Abbrev

pgrace

Publisher

Subject

Agriculture, Biological Sciences & Forestry Civil Engineering, Building, Construction & Architecture Economics, Econometrics & Finance Education Public Health Social Sciences

Description

In the rapid progress of the world today, the contribution and role of the younger generation becomes a obligation to be present in every problem in the world. To deal with various problems, The Sustainable Development Goals (SDGs) are presented as a common goal for a better world to maintain the ...