The government is committed to complete the goals and achievement of RPJMN (Medium-Term National Development Plan) 2010-2014 before the end of the term of office of the president.
So far, there has been a lot of development achievements completed, even though there are some shortcomings that need to be continually improved. But, the government is optimistic that its effort will be successful. For example, the Human Development index that has successfully been improved. Enrollment rate to Elementary, Secondary, and High Education showed a satisfactory realization. Life Expectancy Rate continues to increase, even the Government is optimistic that it will be able to reach the target in 2014.
Infant mortality and maternal mortality rates continue to decline, even Indonesia is an example of success of a country who is able to significantly reduce tuberculosis patients, either through early detection on treatment.
The ability to increase national productivity has shown real results. This is reflected in the increase in per capita income as well as the growing number of middle class in this country. In 2004, our GDP per capita amounted to USD 1,177. In 2009, it was successfully increased to USD 3,592 last year. With hard work, it is expected that by the end of 2014, the GDP per capita will be close to USD 5,000.
In Southeast Asia, Indonesia is committed to ensure the readiness toward the establishment of ASEAN Community by 2015 through three pillars, namely political and security pillar, economic, and socio-cultural pillars. Indonesia is also actively engaged the community can provide benefit and welfare for all.
2013 is a very important and special year for Indonesia. After nearly 20 years, Indonesia will become the chairman and host of the Asia-Pacific Economic Cooperation (APEC) summit meeting in Bali in October. The theme of the APEC meeting under the chairmanship of Indonesia is “Resilient Asia-Pacific, Engine of Global Growth”.
At the end of this year, Indonesia will host two other important meetings, i.e. the World Cultural Forum and the World Trade Organization (WTO) ministerial meeting. In this regard, the President invites all elements of the nation to participate in the success of this important event. Indonesia’s international contribution is also reflected through its role in world peacekeeping missions. Indonesia has become one of the major contributors to a number of UN peacekeeping missions.
Indonesia’s strategic role is also reflected in the appointment of Indonesia by the UN Secretary General to lead the panel in charge of preparing the agenda of the post-MDGs development. Together with the Liberian President, Ellen Johnson Sir leaf and British Prime Minister, David Cameron, the Indonesian President has carried out the mandate, and the final report of the Panel has been submitted to the UN Secretary General at the end of May 2013 in New York.
Indonesia actively fought for the establishment of a global partnership so that the world can come together to eradicate poverty in the framework of sustainable growth with equity.
Furthermore, the President stated that there are four important things that need to be observed at this time. First, the importance of the ability to manage the economy in the midst of uncertainty and the global economic slowdown. Second, the importance of maintaining harmony and tolerance. Third, the importance to succeed the 2014 general election and leadership succession in a democratic and peaceful way. Fourth, the importance of constantly maintaining sovereignty and integrity of the Republic of Indonesia territory.
Concerning Indonesia’s ability to maintain and manage the national economy, when we look back at the national economy after the 1998 crisis, the President is grateful that the national economy continues to grow sustainably. People’s purchasing power continues to increase, the middle class is growing significantly, fiscal and monetary stability in maintained, and national economic fundamentals are getting stronger.
A number of external shocks, ranging from the world’s crude oil price hike and the financial and global economic crisis, can be successfully overcome. The economy grows in the range of 5%-6%, the business sector in developing, unemployment decreases, and poverty rate can continuously be reduced. All these achievements happened simply because the government has successfully unite commitments to find solutions to any problems encountered in international forums, both regional such as ASEAN and APEC, as well as multilateral forums such as the G20.
The president is often asked by many parties about the recipe that we have so that we can with-stand the global economic crisis of 2008-2009, and even our economy grew impressively. “I replied that Indonesia’s economic management always prioritizes the principle of prudence, by maintaining a measured expansion space. In many countries hit by the financial and economic crisis, these two things are often contested, or become a trade-off. Besides that, I also convey that Indonesia’s economic development is also supported by improving business climate, political stability and security, as well as the massive movement of entrepreneurship.
The principle of prudence in managing the economy is also reflected in our commitment and ability to maintain fiscal health. State revenue is continuously improved, spending is controlled, and fiscal deficit to Gross Domestic Product is kept below 3%. The government also continues to encourage the strengthening of the domestic market and purchasing power through what is called “Keep Buying Strategy”. The strategy is to maintain and improve “affordability of consumption” both in terms of price and income of the people. The policy that has been pursued since 2004 has proven capable of strengthening the capacity of the domestic market as the key driver of economic growth.
Since 2011, through the Master plan for the Acceleration and Improvement of Indonesia’s Economy (MP3EI), the government has committed to accelerate infrastructure and connectivity. The results are beginning to be visible. A number of large-scale infrastructure projects are being done in various regions of the country. This was achieved through good collaboration between the central government and local government, state enterprises, business, and society.
The goal of it all was the establishment of a national connectivity which in turn will encourage industrialization and down sterilization. Our economy will also be more efficient, more competitive, and more evenly distributed throughout Indonesia. All of these recipes have been proven capable of making Indonesia as one of world’s major investment destinations, with an investment–grade predicate. Investment flow outsider Java continues to increase. This will ensure the availability of job opportunities which are more evenly distributed, and a broader welfare improvement.
Business News - August 21, 2013