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Investments In The Coconut Sector In Indonesia : Current Situation And The Potentials

Since 1967, Indonesia has transformed from an agrarian economy into a rapidly advancing industrial economy. Agriculture sector is still significant and has contributed 1/3 o f the Gross Domestic Product. Indonesian government attaches importance to small and medium enterprises in the national economy, in the linkages that they provide with the national economy and the world. Small and medium enterprises operating in the coconut industry are increasingly required to measure up to the strategic variables of the country and the regional system. They can no longer continue to face inward focusing on their own internal characteristics. While being deeply rooted in the local context, they are receptive to challenges o f new complex global economic scenarios that require specific service in order to meet their needs and facilitate their approach from local to global dimension. In this regard, the government restructures the business climate through various schemes for small enterprises from unfair and unbalanced competition. Reserving business sectors, such as in the coconut palm industry, is a barrier to entry from potential competition. However, through partnership programmes, the reserved sectors are opened for investment by large and medium enterprises. This policy will strengthen the people economy that plays the role as a pillar o f the national economy through business alliance, synergy among small, medium and large enterprises. Global economic condition entering the third millennium tends to influence the national economy particularly investment and trade across nations. This tendency leads to regional economic groups to strengthen themselves in order to survive. In this context, the APCC member countries need to reposition themselves through consolidating business alliance among economic players through linkages in the coconut industry and its derivatives across borders and looking for the opportunities among the members. It is expected that APCC will continue and have the ability to optimize regional potential resources to compete in global market and contribute more prosperity to the region.

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