Industry Classification by Type and Explanation – The term industry is often referred to as all human economic activities that process raw materials or raw materials into semi-finished or finished products. Regarding the Explanatory Paper on Industrial Classification by Type and Explanation, Check out the discussion below.

What is Industry?

The term industry is often referred to as all human economic activities that process raw materials or raw materials into semi-finished or finished products.

According to this definition, the term industry is often referred to as manufacturing activity. Yandex Blue China Russia Indonesia Full Video Review, The term industry is very broad and includes all human activities in the productive and commercial economy.

Because it's a broad economy, then the number and type of industry varies greatly or differs per country or region.

So you should start to maintain a good relationship with your in-laws because there will be misunderstandings and disputes between you and your in-laws, the more advanced the level of industrial development in a country or region, the greater the number and type of industry and the more complex the type of activity and business.

Methods of classifying or classifying industries also vary. But in general, industry classification is based on criteria based on labor, market share, raw material, modal, or the type of technology used.

Apart from these factors, The development and economic growth of a country also determines the country's industrial diversity, the larger and more complex needs of society that must be met, and a wider variety of industries.

Industrial Classification

Regarding the classification of industries according to their respective types, is as follows :

Industry classification based on raw materials

Each industry requires different raw materials, depending on what is produced from the industrial process. Industries can be divided based on the raw materials used, industry is divided into :

• Extractive Industry – namely industries whose raw materials are obtained directly from nature. For example, agriculture, fisheries and forestry.

• Non-extractive industry – which is an industry that processes products from other industries. For example, plywood industry, industrial textile, and spinning industry

• Failing industries / tertiary – its industrial activity is to provide services for the needs of others. For example bank, trade, transportation and tourism.

Industry classification based on the resulting production

On the basis of the resulting production sector can be divided into:

• Industry premier, namely industries that produce goods or objects that do not need to be processed further. Goods or objects produced can be used directly. For example like, convection industry, weaving industry, food industry & drink.

• Industry seconds, i.e. industry in which goods or goods are produced which must be further processed before being enjoyed or used. For example, spinning industry, tire industry, steel industry and textile industry.

• Tertiary industry, namely industry, whose results are not goods or objects that can be directly or indirectly enjoyed or used, but in the form of services that can promote or assist community needs. For example: transportation industry, banking industry, trade industry, and tourism industry.

Industry classification by occupation

Based on the number of employees, These sectors can be divided into the following areas:

• Home industry – employs less than four workers. This industry has very limited capital, workers come from family members, and industry owners or managers are usually household members or family members. For example, weaving industry, craft industry, tempeh industry / tofu and snack industry.

• Small industry – is an industry whose workforce is approx 5-9 person. The characteristic of a small industry is that it has a relatively small capital, coming from the workforce, or who still have a relative relationship. For example, tile industry, brick industry and rattan processing industry.

• Medium industry – i.e. industry with approx. 20 to 99 employee. The characteristic of medium-sized industry is that it has sufficient capital, that the workforce has certain skills and that company managers have certain management skills. For example, the convection industry, ceramic industry, and also the embroidery industry.

• Big industry – which is an industry where the number of employees is more than 100 employee. A distinctive feature of a large industry is that it has a large amount of collectively acquired capital in the form of shareholdings, that the workforce has special skills, and that business leaders are selected through a fit and proper test (fitness and profession) ). For example, industrial textile, automotive industry, steel industry and aircraft industry.

Industry classification based on raw materials

Based on the raw materials/raw materials used, sectors can be divided into:

• Agriculture industry, industry processes raw materials originating from agricultural activities. For example, vegetable oil industry, sugar industry, coffee industry, tea industry and food industry.

• Mining industry, the industry processes raw materials originating from mining products. For example, industries that process raw materials from mining products. For example: steel industry, cement industry, synthetic fiber industry, and fuel industry

• Service industry, namely an industry that processes services that liberate and lighten the burden on society, and also very profitable, for example: retail industry, tourist, banking, transportation, art & entertainment.

Industry classification based on business unit location

The existence of an industry significantly determines the objectives or specifications of industrial activities. Depends on business location, industry can be divided into:

• Market-oriented industry (market-oriented industry), industries approaching consumer sales territory.

• Processing-oriented industry (Supply oriented), is an industry that focuses on areas with a high concentration of population, especially in areas where many workers are employed but have no training.

• Processing industry (Supply oriented industry), olive industry located near or at the processing site. Industries located near or at processing sites. For example, cement industry in Palimanan Cirebon (near limestone), fertilizer industry in Palembang (dekat sumber Pospat dan amoniak) and the fuel industry in Balongan Indramayu (with an oil refinery).

• Industry that is not bound by other requirements (Footlose industry), i.e. industries that are not bound by the above conditions can be established everywhere, because of commodity, the workforce and market are vast and ubiquitous. For example, electronics industry, electronics industry, automotive industry and transportation industry.

Industry classification by goods manufactured

On the basis of goods produced, sectors can be divided into:

• Heavy industry, i.e. industries that produce machinery or other production equipment. For example: mechanical engineering and printing industry.

• light industry, i.e. industries that produce finished products for consumption. For example, pharmaceutical industry, food industry, and beverage industry.

Read Also : Territory and Territorial Concept

Industry classification based on production process

Based on the production process, sectors can be divided into:

• Upstream industry, where only raw materials are processed into semi-finished products, only supplying raw materials for other industrial activities. For example : industrial aluminum, plywood industry, spinning industry and steel industry.

• Downstream industry, which is an industry that processes semi-finished products into finished products so that the goods produced can be used or enjoyed directly by consumers. For example, aircraft industry, convection industry, automotive industry and furniture industry.

Industry classification based on capital used

On the basis of the sector the invested capital can be divided into:

• Domestic Investment Industry (PMDN), i.e. industries that receive capital (domestic) from the government or national entrepreneurs. For example, the tourism industry, handicraft industry and food and beverage industry.

• Foreign investment industry (PMA), namely sectors whose capital comes from foreign investment. For example, communication industry, oil industry and mining industry.

• Industry with joint capital (join venture), namely industries whose capital comes from collaboration between PMDN and PMA. For example, automotive industry, transportation industry and paper industry.

Industry Classification Based on Management Topic

Based on management topics, sectors can be divided into:

• People's industry, an industry that is managed and operated by humans, For example, the furniture industry, snack industry and craft industry.

• State industry, industry managed by the State and owned by the State and known as BUMN; Paper industry, fertilizer industry, steel industry, mining industry, oil industry and transportation industry.

Industry classification by way of organization

How to Organize An industry is influenced by various factors, as: Modal, labor, the resulting product, and marketing. Depends on organization, sectors can be divided into:

• Small industry, i.e. industries with characteristics: relatively low capital, simple technology, workers with less than 10 employees usually come from families, the product is still simple and the marketing location is still limited (scale local). For example, the handicraft and snack industry.

• Medium industry, i.e. industries with characteristics: relatively large capital, technology is well advanced but still limited, workforce between 10 and 200 person, temporary workers and relatively wider marketing (regional scale), for example: embroidery industry, shoe industry and children's toys industry.

• Big industry, i.e. industries with characteristics: very large capital, advanced and modern technology, organized organization, a large number of skilled workers and workers. National or international marketing. For example: Electronics industry, transportation industry, armament industry, and also the automotive industry.

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Industry classification based on the Decree of the Minister of Industry

In addition to the industry classifications mentioned above, there is also an industrial classification based on the Decree of the Minister of Industry No. 19 / M / I / 1986 from the Ministry of Industry and Trade. This classification is as follows:

• Basic Chemical Industry (IKD), is an industry that needs: modal, skill, and application of advanced technology. The following industries belong to the IKD Group:
  • Organic chemical industry, for example : textile chemical and explosives industry.
  • Inorganic chemical industry, for example: cement industry, sulfuric acid industry and glass industry.
  • Agrochemical industry, for example : pesticide industry, and chemical fertilizer industry.
  • Cellulose industry & rubber, for example: pulp industry, paper industry, and tire industry.

• Base Metal and Electronic Machinery Industry (IMELDE), is an industry that processes metal raw materials into heavy machinery or mechanical engineering and assembly. These industries include:
  • Manufacture of agricultural machinery and equipment, for example: tractor engine, petrol engine and pump engine.
  • Machinery industry / heavy construction, for example: stone crusher, buldoser, excavators and motor graders.
  • Machine tool industry, for example: lathe, bor, chainsaw and press machine.
  • Electronics industry, for example: television, computer, and radio.
  • Electrical machinery industry, for example: generator and power transformer
  • Railway industry, for example: wagons and locomotives.
  • automotive industry (automotive industry), for example: mobil, motorcycles and automotive components.
  • For example, the aviation industry: airplanes and helicopters.
  • Metal and basic products industry, e.g. steel industry, aluminum industry and copper industry.
  • Shipping industry, for example: shipbuilding and ship repair.
  • Manufacturing machinery and equipment, for example: production machine, manufacturing equipment, blower, and construction.

• Various industries (AI), is an industry whose goal is to produce various types of goods for daily needs. These industries include:
  • Industry textile, for example: thread, cloth and clothing.
  • Electrical and metal industry, for example: fan, refrigerator and sewing machine, television and radio.
  • Chemical industry, for example: soap, toothpaste, sampho, ink, plastic, drugs and pipes.
  • Food industry, for example: cooking oil, flour, gula, teh, coffee, salt and packaged food.
  • Construction and general materials industry, for example: sawn wood, plywood, and marble.

• Small industry (I), is a relocation industry with low number of employees and simple technology. Usually referred to as home industry, for example: craft industry, household appliances and floor furniture industry (pot).

• Tourism industry, is an industry that generates economic value through tourism activities. The shape can: art and culture tourism (for example: arts and culture events), education tourism (for example: relic, architecture, natural observation instruments and geological museum), natural tourism (for example: natural scenery on the beach, mountains , plantation and forestry) and city tourism (for example, visit the center of government, shopping center, shopping area, restaurant, hotel, and entertainment places).

Thus our discussion of the Paper Material Industrial Classification By Type and Complete Explanation. Read it too Complete Indonesia Map. thank you for visiting hopefully useful.

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