46th Session of the APO Governing Body
8–10 June 2004, Yogyakarta, Indonesia
Inaugural Address
by H.E. Dr. Dorodjatun Kuntjoro-Jakti,
Coordinating Minister for Economic Affairs, Indonesia
Distinguished
Guests, Honorable Chairman of the APO Governing Body
and Director for Bangladesh, Dr. Shoaib Ahmed; Secretary
General of the APO, Mr. Takashi Tajima; Governor of
Daerah Istimewa Yogyakarta; Delegates from APO member
countries; Ladies and Gentlemen:
It is a great honor for me to be given the opportunity
to address this session on the auspicious occasion
of the 46th Session of the Governing Body of the Asian
Productivity Organization. On behalf of the Government
of Indonesia, I welcome all delegates, observers and
members of the APO secretariat.
It is a pleasure to open this important event in
the historical city of Yogyakarta, one of the main
tourist destinations in Indonesia. Yogyakarta is blessed
by nature with its proximity to beautiful mountains
and the south Indian Ocean as well as famous temples
and monuments from the past Hinduistic and Buddhist.
I hope all of you will take the opportunity to do
some sight seeing and shopping during your stay with
us. I would like also to share with you a historical
fact of Yogyakarta: it was the capital of the Republic
of Indonesia during the fighting to liberate Indonesia
in the period of 1946-1949.
The Governing Body is the supreme organ of the Asian
Productivity Organization (APO) and, hence, this session
is very strategic because it will determine the direction
and policy of the APO. The twenty member states of
the APO have all recognized the importance of productivity
in national development and are seeking various avenues
to increase productivity in all sectors. Productivity
growth is key to improving competitiveness, economic
growth and prosperity.
Productivity is a measure of a nation's efficiency
in producing goods and services measured by the size
of output relative to inputs. Productivity growth
occurs when additions to output rise relative to changes
in inputs and is dependent upon the complex interplay
of a wide variety of factors. The level of productivity
varies not only between nations, but also varies across
sectors, industries and individual enterprises. Productivity
differences result from varying levels of worker skill
and education as well as differences in inputs of
capital and technology but are also crucially affected
by organization, managerial skills and performance
of institutions.
Promotion of awareness of the importance of productivity
is one of the major achievements of APO. APO has been
sensitive to the specific circumstances of each individual
member and has promoted its objectives within the
context of the specific situation. APO has sought
to spread the productivity gospel from more advanced
economies and sectors to those that have to catch
up. It has also incorporated advances in understanding
of the determinants of productivity over several decades,
including the importance of knowledge and information
technology in the context of globalization. Therefore,
the concept of productivity is dynamic, not static.
Indeed, the globalization of economies and other
associated trends require broader conception of productivity
and new ways for its improvement. Increased competition,
internationalization and sophistication of markets,
the changing structures of production distribution
systems, the global quest for decent work, and the
increased concern about social and ecological issues
make productivity improvement even more important.
New concepts and new approaches to productivity improvement
and the sharing of the resulting gains are needed
in the face of these developments. Productivity improvement
efforts should make a clear contribution towards a
fair globalization and help address the key challenges
that countries are confronted with.
New challenges in addition to the age-old challenge
of poverty have arisen so that efforts to promote
equitable development through broad-based productivity
gains are even more important than in the past. Not
least of these is the recent global challenge of terrorism
and the threat to stability that it represents. The
challenge of environmental degradation and new threats
to human health are serious problems that also demand
our increased attention.
In order to respond effectively to the challenges
ahead, broad-based improvements in education, health
and nutrition are vital. Enhancement of efficiency
and effectiveness in economic activities at both micro
and macro levels should be supported through policies,
programs and activities that aim to accelerate productivity.
Social dialogue and partnership at national and enterprise
levels should be encouraged for long-term productivity
and competitiveness. Such efforts will ultimately
increase national productivity and living standards,
but must be supported by strengthened governance institutions.
Ladies and Gentlemen, in many of the deliberations
on economic policy I have engaged in since joining
the Cabinet in August 2001, I have often stressed
the importance of productivity. Productivity is the
key for enhancing the competitiveness of our countries
in the globalization era and this is so throughout
the entire world. We accept that there will be differences
in levels of productivity as in levels of income.
However, for Indonesia, catching up to the more advanced
economies through broad-based improvements in the
productivity of our farmers, workers and enterprises
is a key to our future.
We realize Indonesia has a long journey ahead in
this process, but we will seek to maximize our capabilities
and strengths and of course to synergize all parties
and potentials to achieve higher national productivity.
We must have the courage to recognize that this growth
of productivity is essential in overcoming poverty
and in boosting our low level of competitiveness and
to accept that it will bring changes in the composition
of economic activity and employment as it improves
our economy.
The Government of Indonesia is supportive of a more
conducive climate for a culture of productivity in
business sectors, the bureaucracy, in educational
institutions and all the other sectors.
Related to this session, I do hope discussions of
policy and strategy will pay attention to and take
into account global issues, the current and new challenges
and specific circumstances of the respective members
of the APO. I believe with some effort, cooperation
and understanding among APO members will continue
to improve with the expectation the deliberations
will benefit all members so that the objective of
increased productivity will be realized.
I now declare the 46th Session of the APO Governing
Body to be open.
Thank you.
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