√ Definition of Industry, Benefits, Classification and Examples
Definition of Industry, Benefits, Classification and Examples - On this occasion About Knowledge will discuss about Industry. Which in this discussion explains the meaning of industry, benefits, classifications and examples briefly and clearly. For more details, see the following article.
Definition of Industry, Benefits, Classification and Examples
With an advanced industry, a country will be more advanced and its economy will be more evenly distributed. This is because the per-capita income will be higher and the prosperity of the people will also increase.
Currently, the economy of our country, namely Indonesia, is increasing. This is due to the fact that many industrial sectors are growing rapidly. So the more industries, the more labor absorption and will reduce unemployment.
Definition of Industry
The definition of industry is an activity or processing activity of raw materials or also semi-finished goods. So that it becomes finished goods that have a high selling value and are sold at a profit. This industry can also be interpreted as a process of processing raw materials or also semi-finished materials into finished goods that are valuable for resale.
Industry Benefits
The following are some of the industry benefits that can be obtained, including:
- Reducing the number of unemployed means the number of jobs will increase.
- State income will increase if industrial products are imported abroad.
- Reducing domestic consumer consumption of products/goods from abroad.
- Increasing the processing of available raw goods into semi-finished goods or finished goods so that they have a sale value.
Industrial grouping or classification
Based on the classification or grouping with several bases including:
Based on the location of the raw material
Based on the location of the raw materials, the industrial grouping includes:
- Extractive industry
The extractive industry is taking raw materials directly from the natural surroundings (usually without processing them first) so that they will immediately have a sale value. such as for example plantations, fisheries, mining, agriculture, and others.
- Non-active industry
A non-extractive industry is an industry that takes raw materials from other places or raw materials for its production take products from other industries. such as for example the cloth industry, as well as plywood.
- Facilitative industry
The facilitative industry is an industry whose products are in the form of services that are sold to consumers, so that consumers feel satisfied. such as transportation, expedition, insurance, and others.
Based on the size of the capital
Based on the size of the capital and the size of the capital, this industry is grouped into 2 (two), namely:
- Capital intensive industry
A capital-intensive industry is an industry that is built using very large capital for its construction as well as for its operational activities or activities.
- Labor intensive industry
Labor-intensive industry is an industry that focuses on a large number of workers in the construction and operation of the industry.
Based on the capital used
Based on the capital used, this industry is grouped into 3 (three), namely:
- Domestic Investment (PMDN)
Industries where the capital comes from domestic entrepreneurs or the government.
- Foreign Investment (PMA)
Industry in which the capital comes from foreign investment.
- Industries with joint ventures
An industry in which the capital comes from a mixture of capital from domestic entrepreneurs and foreign entrepreneurs.
Industry based on the number of workers
The division of industries based on the number of workers includes:
- Domestic industry
Home industry is an industry that has a small number of employees, approximately 1 to 4 people.
- Small industry
Small industry is an industry whose workforce ranges from 5 to 15 people.
- Medium industry
Medium Industry is an industry whose workforce ranges from 20 to 99 people.
- Big industry
Large industry is a very large industry, having more than 100 employees.
Based on the selection of industrial locations
The division of industries based on location selection can be grouped as follows:
- Market-oriented industry
The industry was founded based on the location of potential consumers, if consumers the greater the potential in that place, the better it will be for sales or sales market. So the industry will be oriented or also focus on the market.
- Man power oriented industry
Industries like this are usually located in the midst of community settlements, due to this type of industry requires a lot of manpower so that it is more effective and also efficient in activities or activities operational.
- Supply-oriented industry
The industry is located near the location of the raw materials needed for a production process, the reason is that the closer to the location of raw materials for production it will save costs transportation.
Based on individual productivity
Based on productivity per person, the classification of this industry is as follows:
- Primary industry
Primary industry is an industry whose production goods are not processed directly, so in this industry the goods are produced without being processed first. such as for example Agriculture, fisheries, plantations, animal husbandry and others.
- Secondary industry
Secondary industry is an industry that processes raw materials into semi-finished goods so that they can be reprocessed. For example, silk thread can be processed into silk cloth.
- Tertiary industry
The tertiary industry is an industry whose product is a service that can provide a sense of satisfaction to consumers. For example insurance, transportation, expedition, maintenance, and others.
Industry According to the Decree of the Minister of Industry No. 19/M/I/1986
- Basic chemical industry
Basic chemical industry is an industry that produces goods having chemical properties, such as for example fertilizers, cement, drugs, and others.
- Basic metal machinery and electronics industry
The base metal machinery and electronics industry is an industry related to the processing of raw metals into finished metals that are commonly used. For example, airplanes, motorized vehicles, television, computers, and others.
- Small industry
Small industry is an industry that has a small number of workers, for example, industry home, the goods it produces such as household goods, crafts, and etc.
- Various industries
Various industries are industries that can produce various kinds of goods for daily needs. For example, the clothing industry, food and beverage, cooking oil, soap, and others.
- Tourism industry
The tourism industry is an industry that can generate profits from tourism activities or activities, such as nature tourism, performing arts tourism, and others.
An example of a growing industry in Indonesia
The following are some examples of industries in Indonesia, including the following:
Fashion Industry
In Indonesia, there are currently a lot of fast-growing fashion industries, such as distribution and clothing. In this industry, many young people are pursuing it, because fashion is always evolving from time to time, and various kinds of the latest fashion models are always emerging. The industry is growing fast because it has a broad market and new innovations always emerge in fashion.
Mabel Industry
Also known as the furniture industry, which processes semi-finished or raw materials such as wood, rattan and other materials into finished goods that have a high selling value. From the beginning the mabel industry was indeed classified as very promising, many entrepreneurs were involved in this industry in their business. The goods that are produced are of course very much needed for daily needs, especially in homes and offices. Goods produced from the Mabel Industry include: tables, cabinets, chairs, and so on.
Transportation service industry
The transportation service industry is an industry that sells services by providing transportation services to consumers to be able to reach their destination. for example, such as rail transportation services, online motorcycle taxis, busways, online taxis, and others.
Thus the explanation about Definition of Industry, Benefits, Classification and Examples. Hopefully it can be useful and add to your insight. Thank You.
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