COUNTRY PAPER INDONESIA - ACESL · COUNTRY PAPER – INDONESIA TCDPAP & FIDIC/ASPAC Conference...
Transcript of COUNTRY PAPER INDONESIA - ACESL · COUNTRY PAPER – INDONESIA TCDPAP & FIDIC/ASPAC Conference...
Presented by Eko Bagus Delianto & Zulkifli Halim
Colombo, 02 March 2012
COUNTRY PAPER – INDONESIA
TCDPAP & FIDIC/ASPAC Conference 2012
Presentation Outline
I. Indonesia 2025 Vision
1.1 Background
1.2 Potential and Challenges for Indonesia
1.3 Development of 6 RI’s Economics Corridor
II. About INKINDO
2.1 INKINDO Profile
2.2 INKINDO Services
2.3 Collaboration and Knowledge Transfer Programs
Background
Global economic growth of each decade
Indonesia 2025 Vision
• Geographically, Indonesia lies in the heart the East Asia’s
economic growth;
• When the long-term trend (1970-2000) of the world’s economic
growth experienced a decline, East Asia’s economic growth in
the country experienced an increase’
• Since 2008, developing countries’ export growth which is
initiated by demands from other developing countries has
increased significantly (total contribution is 54 % from 12 % in
1998);
• The planned implementation of ASEAN’s Economic Community
and the existence of the ASEAN-China Free Trade Area
(ACFTA) mandate Indonesia to increase competitiveness. The
acceleration of the economic transformation formulated in the
Indonesia 2025 Vision/ Master Plan for Acceleration and
Expansion of Indonesia Economic Development 2011-2025
known as MP3EI, is aimed at providing a catalytic force to
increase Indonesia’s competitiveness..
• With the implementation of MP3EI platform, Indonesia aims to
position itself as one of the world’s main food suppliers, as a
processing center for agricultural, fishery, and natural
recourses, as well as a center for global logistic by 2025 or
earlier.
Potential and Challenges (1/4)
Indonesia 2025 Vision
Population and Human Resources
In 2010, Indonesia with its 240 millions population, ranks the 4th most populous
country in the world. Its huge population and the rapidly increasing buying power of
its population is creating a significant market.
Potential and Challenges (2/4)
Indonesia 2025 Vision
Natural Resources
Until 2010, Indonesia is one of the world’s major producer of a broad range of commodities. It is the largest
producer and exporter of palm oil in the world. It is the world’s largest second producer of cocoa and tin.
For nickel and bauxite it comes 4th and 7th respectively in world’s reserves. It is also one of the largest
producers for steel, cooper, rubber, and fisheries, the second largest coal exporter in the world.
Potential and Challenges (3/4)
Indonesia 2025 Vision
Geographical Location
Indonesia is located within five hours travel time from the world’s two largest and fastest
growing economies, namely India on the Northwest and China on the Northeast.
Potential and Challenges (4/4)
Indonesia 2025 Vision
Indonesia’s Challenges
• Indonesia’s current economic structure is primarily focused on agriculture and industries which extract and harvest
natural resources. There are only limited industries which focused in products with added value. In addition to this,
there is a development gap between western and eastern parts of Indonesia. MP3EI is aimed at accelerating and
expanding the economic development in Indonesia as a starting point towards making the nation more equitable.
• The provision of infrastructure to support economic activities. Connectivity between region should be developed to
accelerate and expand economic development, to improved products competitiveness, and accelerate economic
growth. Included in the connectivity infrastructure is the construction of transportation routes, information and
communication technology (ICT), and all regulations associated with them.
• The quality of human resources is a challenges for Indonesia. Currently 50 % of workers in Indonesia have
primary school education, and only 8 % attain a formal diploma. Quality of human resources is affected by access
to quality education and health facilities, as well as access to basic infrastructure.
• Indonesia is also facing rapid urbanization. It is predicted that by 2025, the population in urban areas will reach
65%. These will impact the employment structure, increased land use conflicts, and increase the need for reliable
infrastructure on support the distribution of goods and services.
• Indonesia faces the challenge of global climate change. Several indicators significantly affecting human life are;
rising sea levels, rising air temperatures, changes in rainfall period, and extreme climate change. Similarly, the
influence of combination of rising temperature in regions, changes in the level of precipitation and the intensity of
drought/flood.
Development of 6 Economics Corridor (1/4)
Indonesia 2025 Vision
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Indonesia Map
Development of 6 Economics Corridor (2/4)
Indonesia 2025 Vision
By implementing the MP3EI, Indonesia’s overall GDP is expected to grow more rapidly and
broader, both for areas within the six economic corridors and for areas outside the
corridors. By applying MP3EI, the annual national GDP growth will be approximately 12.7%
nationally with regional growth within the corridor at 12.9 %.
Development of 6 Economics Corridor (3/4)
Indonesia 2025 Vision
The MP3EI development
focuses on eight (8) main
programs, namely the
development of agriculture,
mining, energy, industry,
maritime, tourism,
telecommunication, and
development of strategic
zones. These eight primary
programs consist of 22 main
economic activities which
are designed based on the
inherent potential and
strategic value of each
corridors.
Development of 6 Economics Corridor (4/4)
Indonesia 2025 Vision
To support the development of the main economic activities within the corridors, the total
investment value has been identified at about IDR 4,012 Trillion. The government will contribute
around 10 percent of this cost in the form of basic infrastructure provision, such as roads,
seaports, airport, railways, and power generation. The remaining will be provided by state owned
enterprises, private sector, and through public private partnership (PPP).