Wednesday, 25 November 2015


Office of the Coordinating Minister of Economic Affairs (CMEA) sees that the role of market intelligence is increasing, especially market research, competitiveness, and comparative advantage of competitor countries. In the end, the result of work of a market intelligent is to seize market of competitor countries. “When I was working at the Indonesian Embassy, I see the role of market intelligent. There are many disguises or brokers in some economic activity centres, such as the ports, United States senate meetings and so forth, “Edy Putra Irawady, Deputy Coordinating Minister of Economic Affairs for Industry and Trade, told Business News (July 30).

Backwardness and decline of competitiveness of a country, including Indonesia, are determined by many factors. There are shortcomings in the system of distribution of goods and services, and also a lack of adjustment to market. Business operators are difficult to move, and could not adjust to the highly dynamic market, and easily change. This is not separated from consumption and consumer behavior patterns. “When I served in the Congress, in the ports disguised as broker, there are many things that I know.”

One things that is critical is that there is discrimination of economic policy by the large country like the United States for certain business groups. Suppose the policy of the Food and Drug Administration (FDA) that resembles BPOM (the Food and Drug Control Agency) in Indonesia regarding documentation (licensing). “There was a policy which is based on preference or which prioritizes certain groups or countries.”

Associated with the administration of President Joko Widodo (JOKOWI), especially the economic sector, all parties need to learn from the plus and minus of the economic team of the former administration. The plus must be improved, and the minus corrected. Suppose that during the government of former president Suharto, the economic team is very obvious with stability and sustainability of development. So that the economic team at the time made a five-year development plan (Pelita). “The economic team built the agriculture sector first, until finished. After that, it moved on to other industry sectors. All sectors are formulated and evaluated in the five-year development plans. Everything is running continuously with maintained stability.”

Even, in 1985 – 1988, the Economic Team of former president Suharto dared to divert export performance to non-oil & gas sector. Investment was massive, especially import substation. Investment and industrial activities grew parallel because there is a guarantee of protection. The doctrine at the time is do not disturb the businessmen’. While in the era of former president BJ Habibie, economic activity refers to the fundamental things. At that time, the monetary crisis has not receded. But BJ Habibie built economic fundamental with regulations. In terms of quantity and quality, regulations that strengthen the economy eventually bring result. “With a relatively short time, BJ Habibie was able to reorganize economic fundamentals, US dollar exchange rate, from IDR 17,000 to IDR 7,000. He was working alone and only assisted by Jusman Syafii Djamal (former minister of transportation). They made their own economic model, bottom-up until the economic fundamentals were improved”.

And, the era of Abdurrahman Wahid (Gus Dur) was in the midst of reform upheaval. Gus Dur, at that time, was more into fixing the economic fundamental policies which are not yet completed. Then, during the administration of Megawati Continued to consolidate and follow up on things that are abandoned. “Kwik (economist and economic minister during the administration of Megawati Soekarnoputri) dared to cut ties with IMF (International Monetary Fund).”

The former President Susilo Bambang Yudhoyono (SBY) built international trust and formulated MP3EI (masterplan for the acceleration and expansion of Indonesia’s economic development). So that the linkage of economic cooperation with foreign countries narrowed. “And, the issue of MDGs (millennium development goals) characterized the leadership of SBY’s economic team. Besides, SBY did not interfere with law enforcement matters, and continue to explore JOKOWI, the realization of Indonesia’s national economic development. Until the era of President JOKOWI, the realization of Indonesia’s national economic development is increasingly apparent. President JOKOWI built a strong protection, i.e. reducing imports to zero”. (E)

Business News - July 31, 2015

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