Thursday, 4 July 2013

INDONESIA’S UNITY TOWARD BETTER ECONOMIC GROWTH



In the past nine years Indonesia’s economy had been rapidly growing. A condition as such had given strength to Indonesia toward becoming a strong emerging economy respected by all nations of the world. It was not impossible that Indonesia had changed from the position of regional power in Southeast Asia into a global power in 2025.
               
To some editors of the press in the journey from Budapest to Jakarta sometimes ago, President SBY stated that now Indonesia had become a regional power and global player. The position of global power could be attained by Indonesia in 2025 at the latest in 2045. For that matter the President reminded to maintain security and political stability so this 240 million population country would not lose the momentum of growth.
               
The President’s statement was not a groundless statement. Recently there was a growing interest among foreign investors to invest in Indonesia. The trend was triggered by data of Indonesia’s growing economy. The average growth of Indonesia’s economy over the period of 2010 – 2014 was 6.3% to 6.8%.
               
Some analyst and economists predicted that high and sustainable economic growth would uplift Indonesia to be in Top Ten position among successful economic states by 2025. Indonesia could even be in top six positions as a stage of economic power by 2050. Last year Morgan Stanley predicted Indonesia as candidate of world’s economic power. They proposed Indonesia to be included in BRIS, the abbreviation of four of the world’s emerging economy. BRIC consisted of Brazil, Russia, India, and China; this term was made popular by Goldman Sach Group in 2001.
               
Morgan Stanley proposed BRIC to be BRICI with additional “I” letter which stands for Indonesia. The reason to include Indonesia was because the investment agency predicted Indonesia’s GDP would come to USD 800 billion in the next 5 years.
               
Beyond the economic aspect, i.e. defense, Indonesia under the governance of President SBY was determined to display their competence in arms industry [alutista], not just in terms of number and quality. Indonesia was determined to be producer of arms not to be under-estimated. The effort was continuously exercised by increasing budget for defense. In 2009, Indonesia’s defense budget was posted at Rp33.67 trillion which continuously increased and in 2012 it came to 72.54 trillion; in 2013 it would come to Rp77 trillion. It turned out that power in armaments contributed significantly to economic growth.
               
The ever strengthened security and defense of the nation could help to create healthy business atmosphere and serve as stimulus to inflowing foreign investment. Besides, by developing armament industry, it would mean extra income for the state. As noted Indonesia had started to be engaged in long term collaboration with some countries.
               
Stated Owned Companies [BUMN] like PT PAL, PT Pindad, PT Dirgantara Indonesia were showing their growing performance. PT Pindad for example, was stormed by order from Malaysia who ordered Anoa panzers. Moreover the guns made by PT Pindad has been tested of their quality by being used by champions of shooting competitions.
               
Based on the above fact it seemed that Indonesia’s ambition to be a global economic power by 2025 would not be hard to achieve. However, I was only possible if all of the people’s elements especially the political elite shared the same vision, i.e. agree to make Indonesia a great nation. All of the political elites must unite in one to prove to the people that they shared the same dream to build a nation of dignity.
               
The political elite must strive shoulder to shoulder with no underlying personal or group’s interest to overcome national problems. President SBY’s proposition that at every end of office transfer of authority from the retired to the successor was worth considering. The hand-shake between ex-President and President in the ceremony would show to the people that there was no “political grudge” among political elites. Under such circumstance the people would be inspired to work hand in hand to build the nation although they were not of the same party or group.
               
Peace within the context of favorable investment climate was needed in Indonesia. The issues around coup d’etat should be well controlled because issues as such remained to be countering productive which would even disturb the investment climate which was now at its best. The issue was no good for investment climate and was something unpleasant to investor. Therefore those who claimed to be part of the political elite or public figures better show their hospitable and peaceful attitude. It was not advisable to spread a harsh and provocative word which was not beneficial to the nation.
               
Even if they had dislike for the present Government, they had to show some respect. Like it or not, the present government was able to show good performance in favorable economic atmosphere. So to give some appreciation and respect to the Government and their achievements would not lower their dignity.
               
To compare Indonesia with a glass of wine which was half filled and half empty, never look at the empty part to judge the country. Such was unfair, and not objective. So the public was expected to be sportive in acknowledging all the progress made.
               
Again in economic achievement, beside the constant growth of around 6% per annum, there had also been progress in other aspects of economy, such as fast flowing investments, emerging middle class which were now posted at around 60 million people which were equal to 5 times of Singapore’s population of 5.5 million people. They were Indonesia’s propellers of growth in the future. With high income level, they were the main consumers of local commodities produced in Indonesia.
               
Indonesia’s progress was now widely acclaimed internationally. Indonesia’s entry into the G-20 group was not the result of begging by Indonesia leaders. International acknowledgement of Indonesia’s advancements was also reflected in some appraisals by International Rating Agencies who awarded the little of Investment Grade to Indonesia. But then if the international world acknowledged Indonesia’s success, why some local elements of the nation did closed their eyes to the achievements?
               
In the future, with  the ever advancing democracy, Indonesia’s economy would continue to progress. If there was anyone who predicted that Indonesia would become economic titan in 2030, it was not a bubble of fancy. Endowed with an area so expansive and fertile, and abundant natural resources, and fourth biggest population in the world, the dream of becoming economic titan was not merely an imagination, provided that all parties safeguard the golden momentum today; all of the ambition called for unity and solidarity among all of the elements of the nation. (SS) 


Business News - April 03,2013

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