Monday, 16 June 2014


Two competing Presidential candidates had set forth their mission and vision- inclusive therein was mission and vision in economy. The programs offered in the mission and vision would be political commodity toward execution of Presidential Election on July 9 2014 next.

Let the public give their vote for the candidate of their choice with their respective mission and Vi­sion. It was noteworthy that whoever was elected, the new leader might have to face economic prob­lems which was different from what they identified - which meant that the strategic plan to achieve them would be different too. Knowing that the objective condition was different, most probably the elected President would have to make strategy adjustments

So far both sides had stressed on the need for restoration of Indonesia's fundamental economy. This would be the new direction of the course. Certainly not just by boosting high economic growth to build a sound economic foundation resting on the evenly firm cornerstones, and relying on domestic potentials with involvement of as many people's power as possible.

So far Indonesia's macro-economy condition was relatively sound and strong but still modest at small business level. National economic growth the past 5 years was around 5.9%, notably high com­pared to other Asean states. Inflation was low too, around 5% while Rupiah exchange rate value was stable at around Rp11,500,- per USD and thank­ fully forex reserves increased to USD 102.6 billion, enough for 5.7 months of import and payment of for­eign debt.

Ratio of deficit in current transaction tend to shrink to 2.1% against GDP. Foreign Debt to GDP ratio was also notably good at around 30.35%, meaning still safely below the tolerable 60% level ac­cording to Law No 17/2003 on State's Finance. Re­gretfully BI's tight credit policy put benchmark rate to stay at 7.5%. In short, Indonesia's macro economic indicator was in pretty good shape,

However the condition of micro-business which still called for attention of the Presidential can­didates was distribution of income among people's group which was not fairly distributed and ironically this was apparent in nearly all regencies and cities in Indonesia. The gini index tend to increase, from 0.308 in 1999 to become 0.413 in 2013. Meaning, the rich got richer and the poor got poorer a condition as such was prone to social unrest.

Serious attention was also called for on Open Unemployment Level [TPT] which was still high, i.e. 5.70%. In Indonesia, unemployment was defined as a person working for only 1 hour or more in a week, and the percentage of this category was still high. The ever widening income gap reflected helplessness of the marginal group in their groping for economic re­sources, be it to own asset, access to education and employment, and public service and facilities they were left behind in all aspect of life.

So the next Government was called to re­spond to structural economic problem through their right, mission, vision and strategy : first by identifying problem and scheme up a way out plan based on mis­sion and vision and have the managerial capability to execute it.

Presidential candidates must not scheme up mission and vision from their own viewpoint but not being orientated to people's need because it was possible that their mission and vision posed as no an­swer to people's problem.

In marketing theory it was stated that compa­nies who were unsuccessful in selling their products to the market was because the product specification was not compliant to market's need as products would not listen to consumers' voice in that case, the product would not sell in the market.

In politics, the above marketing theory was relevant and applicable. The wise and smart leader identified problems by first identifying the prob­lem among the public, listen to their voice , then only work out a Mission and Vision which stood a chance of having public support. Speaking of economic policy design, even if there was any leaders' Mission-Vision that changed strategy orientation for future economic development, the people would still appreciate it as long as the end result was to elevate people's wel­fare. So inclusive development strategy could serve as alternative.

The Presidential candidate and success team should go afield to listen to people's voice as sounding board in sounding board in the making of Mission-Vi­sion and strategy. Whatever problem faced by the pub­lic would serve as good raw material in the making of mission, vision and strategy. Definitely You Orientated approach would be more fruitful than Me Oriented Ap­proach in trying to meet all challenges. (SS)

Business News - June 4, 2014

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