Definition of Industry, Types, Examples, and Purpose

Knowing the Definition of Industry, Types, Examples, and Purpose – Knowing the current industry sector as one of the business sectors that is the benchmark for development in a country is very interesting to know. Because with the development of an industry, it certainly also develops the economy and growth of a country and provides the opening of many job opportunities for citizens.

In general, industry is known as an economic activity that processes raw materials, raw materials, semi-finished goods or finished goods into high-quality goods for specific purposes, including industrial planning and engineering.

Industry is part of the production process. Industrial materials are taken directly or indirectly and then processed to produce goods that are more valuable to the community. The activity of the production process in an industry is called an industry.

If you look at the definition in general, industry can be interpreted very broadly and includes all human activities in the economic field that are productive and commercial. Because it is a vast industry, the amount and type of industry varies from one country to another country or region.

The higher the level of industrial development of a country or region, the greater the amount and type of industry and the more complex its operations.

Economically, the concept of industrialization is also defined as a group of similar businesses, where the word industry is combined with a word that describes the type of industry. The rest is for example the pharmaceutical industry, the clothing industry, the wood industry, etc.

For that, in order to make it easier for Reader friends who want to get to know and understand more about the definition of industry in this discussion, we have summarized the definition of the complete industry along with its type, sector, and purpose in development.

Further, we have presented the discussion below!

Early History of Industry

Before further discussing the definition of the industry along with its types, sectors, and development goals, it is good that we also know about the early history of the industry itself. For that reason, we have presented a discussion about the history of the industry below.

This industry began with the work of a craftsman or craftsman. In ancient times, after living as nomads as gatherers, hunters, and fishermen, people lived permanently, building houses and cultivating the land through farming, gardening, and raising livestock. Their needs are increasing for things like harvesting tools, hunting tools, fishing tools, agricultural tools, gardening tools, mining tools, even military and economic tools. Artisans and artisans emerged as a source of necessary tools and goods. From there, handicrafts and carpentry began to develop, producing basic necessities. To grow into good craftsmen and workers, the apprenticeship model is maintained and to maintain the quality of workmanship and in the carpentry industry,

Iron and steel mining flourished in the Middle Ages. In addition, the extraction of fuels such as coal, oil and gas is growing rapidly. These two things accelerated the development of mechanical technology, starting with the invention of the steam engine, which opened the way for large-scale production and trade of goods, and the mass in the late 18th and early 19th centuries in the cities of Lille and Manchester) and the railway, then steel industry (Essen) and shipbuilding, automobile industry (Detroit), aluminum factory. The chemical and pharmaceutical industries grew from the need for dyes in textile factories. From here the industrial revolution happened.

Since then, the wave of industrialization, such as the mass production of goods and the establishment of factories involving the use of labor, quickly swept the world, replacing traditional agriculture (agriculture). Since then, various industry classifications have emerged.

Industry Definition

Most people think that industry is just a human economic activity that processes raw materials into semi-finished or finished materials. Although the meaning of industry is very broad, this industrial process includes all human activities in certain fields that are productive and commercial in nature. The word industry comes from the Old French word “industria” which means activity, but the word mainly comes from the Latin word “Industria” which means craft and activity.

Broadly speaking, industry is a field of business that produces workforce skills and technology to produce a product for profit. Industrial products are not only in the form of goods (production) but also in the form of services (services), for example production results such as services such as banking, insurance, transportation, shipping services, etc.

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Industry is synonymous with the place where industry takes place, namely the factory, in a broader sense the factory is where people, machines or technology, materials, energy, capital and resources are managed in a unified production system. produce effective, efficient, and safe products and services that are ready for general use or that can be further processed to make other types of products. Factory is synonymous with processing raw materials and making finished products in the form of goods.

The service industry is an industry that provides services to serve or support other industrial activities and can also provide direct services to the community (customers). This type of industry usually operates in buildings (offices).

Industry is a sector or economic activity related to the processing/production of raw materials in a factory that uses skills and labor or the manufacture of finished goods (in industrial English) and the use of tools in the field of processing agricultural products and their distribution as the main activity. So industry is generally known as the next link in the business chain after agriculture, plantation and mining, which is closely related to the land, which fulfills the needs of the land (economics). The position of the industry is further away from the earth which is the basis of economy, culture and politics. Industry is part of the production process and industrial production process activities are called industrial.

Industry can also be interpreted as a group of various companies that offer the same product. In other words, each product is a substitute for another because the company uses the same inputs and faces more or less the same suppliers and buyers.

Types of Industries

To find out what different types of industries are available below, we have presented a variety of different types of industries according to their fields.

Industrial products can be in the form of processed food, textiles, cosmetics and others. And now we can enjoy various services from the industry sector

The following types of industries are found in Indonesia:

  • Primary industry

Primary industry focuses on the production of goods with the help of nature. This is a nature-based industry that requires little human effort. For example, agriculture, plantations, forestry, fisheries, horticulture, etc. as examples of non-mining industries.

  • Extractive Industries

Extractive Industry includes the extraction or re-production of goods from land, air or water. In general, the products of the mining industry are in raw form, and the industry is used in the field of manufacturing and construction which is used to make finished products. For example, mining, coal, petroleum, iron ore, extraction of wood and rubber from forests, etc.

  • Secondary industry

This industry is engaged in the reproduction and marketing of certain vegetable and animal spices. The main purpose is to make a profit from the sale. For example seeding, cattle rearing, poultry farming, mammal farming etc.

  • Construction industry

The construction industry carries out construction work on buildings, bridges, roads, dams, canals, etc. This industry is different from other industries because the products of other industries can be produced in one place and sold in another place. But the goods produced and sold by the construction industry are assembled in one place.

  • Manufacturing industry

The manufacturing industry deals with the transformation of raw materials into finished products with the help of machines and manpower. Finished goods can be consumables or commodities. For example, the textile, chemical, sugar, paper industry, etc.

  • Quaternary Industry

Industries that use high technology. The people who work in these companies are often highly qualified in their field. Research and development companies are the most common businesses in this sector, an example of a secondary industry.

  • Service industry

Currently, the service sector plays an important role in the development of the country and that is why it is called the service sector. The main industries in this category are the hospitality industry, tourism industry, entertainment industry etc.

  • Creative Industry

The definition of creative industry in general is all processes of creation, creativity, ideas and ideas of a person or group that can later produce works or products. The creative industry itself is a combination of two words namely industry and creative. In the Big Indonesian Dictionary, industry refers to the processing or management of goods using facilities and equipment, while creative is an adjective that reflects that the person or group concerned has creativity and the ability to create.

The creativity created by a person or group further encourages economic growth and can open new jobs for those in need. Therefore, the creative economy is an important sector that must be developed from time to time and grow together, because it is one of the pillars of the country’s economy.

Industry Examples from Various Fields

  • Agro Industry

The following industries are activities that use agricultural products as raw materials, design and produce equipment and services for these activities. Austin (1981) specifically defines agribusiness as a business that processes plant (derived from plants) or animal (derived from animals) materials. The process used includes transformation and preservation with physical or chemical treatment, storage, packaging and distribution. This agricultural product can be in the form of ready-to-use consumer end products or other industrial raw materials.

  • Mining

This one industry is one of the pillars of the country’s economic development. This industry is driven by mining companies that manage natural resources (SDA) that are used for the development and well-being of the Indonesian people. Mining is any or all stages of activities related to the exploration, processing and use of minerals or coal, including general surveys, geographic surveys, construction feasibility studies, mining, processing and processing, transportation and sales, and mining operations. activity.

  • Farming

Livestock is part of food production agriculture. Food from the food industry is a producer of animal protein with high nutritional value such as meat, eggs and milk.

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Farming is the care and maintenance of domestic animals, with which profit and income are obtained from this activity. Animals that are bred a lot are cows and chickens. goats, sheep and pigs. Livestock products include meat, milk, eggs, and clothing.

  • Handicrafts

Crafts are one of the types of creative industries that have become a community culture in every district. The craft production process is supported by various raw materials available in the environment such as bamboo, wood, clay, stone, metal, etc.

The handicrafts sold at this cultural art market are one of the types of creative economy that involve art activists and artists who produce works with a qualified cultural and creative background. The art and culture market produces many works that convey an emotional message close to the community.

  • Tourism

The definition of the tourism industry is a branch of the economy that consists of all businesses that provide products and services intended for use by tourists in various levels of travel and tourism. Tourism is a very broad and growth-oriented industry.

According to Tourism Law No. 10 of 2009, the tourism industry is a group of related tourism businesses that produce goods and/or services to meet the needs of tourists in the pursuit of tourism.

The purpose of tourism is to increase mainly currency income and the income of the country and society in general. Expand opportunities and work opportunities and encourage the operation of supporting industries and other supporting industries. Apart from that, tourism is also able to introduce and present the natural beauty and culture of Indonesia.

Purpose of Industrial Development

The government explained that Indonesia will continue to develop the industrial sector for smooth development. The understanding of industrial development is one part of the country’s economic development that applies several principles of sustainable industrial development. This development is based on economic, social and environmental development.

Article 2 of the Industrial Law contains an explanation of the principles and objectives of industrial development. Industrial development also takes place by believing in one’s own abilities and strengths, superiority and environmental sustainability.

The government has announced several goals for the development of the industry. These objectives include:

  • Making well-being more equal

The utilization of natural resources and/or agricultural products for industrial activities must be able to provide fair and equitable results for human well-being while still paying attention to the balance and sustainability of the living environment.

  • Increase economic growth

The structure of the economy must be changed in a better, more advanced, healthier, and more balanced direction. Everything is done to create a stronger and broader base for economic growth in general and provide added value for industrial growth in particular.

  • Appropriate Technology Management

The ability to master this technology is very important because it can increase confidence in the ability of the country’s business world.

  • Strengthening community participation

In this case, an example is a small industry or home industry in which there is a role of the lower class community.

  • Equal Employment Opportunity

With many open industries, it automatically opens up more jobs for those in need.

  • Foreign exchange earnings growth

It is hoped that all forms of industry that exist will help bring in large amounts of foreign exchange for the national economy.

  • Development of industrial growth centers

Areas that have the potential to be developed into industrial centers should be immediately developed with good and accurate methods.

  • The creation of national stability and a strong defense

With the growth of industry and general prosperity, the strengthening of the defense and security sector becomes easy.

Conclusion

So much for a short discussion about definitions from Industry, Types, Examples and Purpose. Not only discussing the definition, but also discussing the history and development of the industry up to now. Understanding the definition of the industry itself gives us the understanding that there are many industrial sectors that we can know and provide many job opportunities according to our interests and abilities in one of the industries