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Thursday, January 17, 2013

Indonesia has the potential to be a developed country by 2030. What are the facts?

Chaerul Tanjung
B.J. Habibie
 Indonesia has the potential to be a developed country by 2030. What are the facts?

Former President BJ Habibie satirical third Indonesia's economic performance today. According to him, many of Indonesia's economic performance are not aligned to the small community.

"Indonesia's economy is a paradox. Lot going on inequality," said Habibie in Jakarta, Thursday (01/17/2013).

Habibie said Indonesia's economic performance more than glance at the macro-micro. In fact, the majority of Indonesian people actually living in the micro level, particularly in terms of effort.

Habibie also criticized that Indonesia's economy to rely more on natural resources (NR) than exploring human resources (HR). Indonesia is not able to act as a more developed country processing power of its human resources in order to advance the state.

"These conditions resulted in abandoned agricultural sector. They are not given jobs so they just busy-busy to cities or abroad to become migrant workers and migrant workers," he said.

In terms of trade, Indonesia also were oriented on the balance of payments and balance of trade. Though to be productive or not, can only be seen from the productivity of working hours. This would by itself raise the balance of trade and payments in the country.

"In addition, its leaders prefer the image and only discourse rather than real work," he said.

The government should focus work on four priority sectors for Indonesia to become the largest economy-7 in the world in 2030. The driving force is nothing but positive energy and character of the nation right leadership.

"For a country with the largest economy in the world-7 2030, Indonesia is needed positive energy and focus," said McKinsey Indonesia PT leader Raoul Oberman FML event held at the National Economic Committee (KEN), in Jakarta, Tuesday ( 11.13.2012).

Present on the occasion among others, President Susilo Bambang Yudhoyono with a number of ministers for the economy, several foreign ambassadors and businessmen.

President Susilo Bambang Yudhoyono in his keynote address said that Indonesia's economy has a tremendous opportunity to grow much higher. With still quite rampant corruption and inadequate infrastructure alone, Indonesia is now able to grow more than 6 percent.

"There is still room (grow larger). With corruption still occurs, traffic congestion, inadequate infrastructure, we grew 6 percent, especially if it's all settled, "the president said yesterday.

Focus is Raoul is in four sectors, including consumer, agriculture and fisheries, natural resources, and human resources. Indonesia has a potential advantage in the four sectors. At the same time, the sector has a huge market opportunity, ie, from 0.5 trillion U.S. dollars this year to 1.8 trillion U.S. dollars in 2030.

43 million workers

Based on the study of the McKinsey Global Institute (MGI), the Indonesian middle class will grow from 45 million this year to 135 million people by 2030. This means that there will be 90 million new consumers who need supplies various goods and services.

In the case of agriculture and fisheries, according to Raoul, the demand will skyrocket along with increasing global population, while the supply is limited. Transformation of the sector which has become more modern conventional becomes crucial.

Based on the projection of the Food and Agriculture Organization (FAO), Indonesia will produce 197 million tonnes of rice in 2030. This is assuming the entire agricultural system running normally. Calculating lost in the process as well as efforts to increase production, total paddy production in 2030 is estimated to 310 million tonnes. Domestic demand will be as much as 180 million tonnes, so there is a surplus of 130 million tonnes could be exported.

Related to natural resources, Raoul argues, when fossil fuels become more limited, Indonesia's ability to utilize and adapt to alternative energy so important. Focus on geothermal energy is important because Indonesia has the largest reserves in the world.

As for human resources, Raoul said, with a growth of 5-6 per cent per year conservative course, Indonesia requires an additional workforce of 43 million people by 2030 from this year, amounting to 109 million people.

The principle of Unity in Diversity, according to Raoul, is a positive energy in Indonesia. When combined with strong leadership character, move to focus work on four priority sectors will lead Indonesia climbed to No. 7 in 2030 the world's largest.

"The question is, what kind of leadership. Of course this is a leadership that is able to integrate public and private, "said Raoul.

On the same occasion, the Chairman KEN Chairul agree that the government should focus on, one of them in terms of human resources. Seed industry should be identified and cultivated.

He also warned that the government's role will recede along with the economic progress of the nation. Otherwise increase the role of private

McKinsey Global Institute Chairman Raoul Oberman said, Indonesia has the potential to be a developed country by 2030. What are the facts?

First, the level of Indonesia was considered the most stable economies in the world. In fact, Bank Indonesia has explained that Indonesia's most stable economy in the last 4-5 years.

Second, about 90 percent of national economic growth came from areas outside Java. Thus, economic growth is not only in Java or Jakarta.

Third, about 11 percent of commodity exports from non-oil sector. This refutes the myth that models the growth of the export-dominated country.

Fourth, the use of resources is reduced, even reduced by 7 percent. It also denied that the resource is the main pillar of the economy.

Fifth, about 60 percent of economic growth driven by increased productivity. It also denied that the economic growth is only of labor force growth.

"It is time for Indonesia to not only be a champion, but also must be champions of the world," said Raoul in the show KEN "Integration of Vision Forward Together Towards Indonesia 2030" at the Ritz Carlton, Sudirman, Jakarta, Tuesday (13/11 / 2012).

According to Raoul, Indonesia does have a long time to be a developed country. If projected to be a developed country by 2030, Indonesia it took 85 years to be a developed country.

Imagine a country England need 250 years to double its gross domestic product. However, China needs 12 years to double its GDP. "This is the rise of Asia, one of Indonesia," he said.

Chairman of the National Economic Committee (KEN) Chairul expressed optimism that Indonesia as a developed country by the year 2030 are the ideals that can be achieved. In fact, it is not considered to be a dream.

"Indonesia developed countries is not just a dream. Indonesia developed countries are the ideals that can be achieved," he said at the opening ceremony Chairul KEN "Together Towards Unification Indonesia Forward Vision 2030" at the Ritz Carlton, Sudirman, Jakarta, Tuesday (13/11 / 2012).

Chairul said that Indonesia's progress must rest on something that becomes specificity Indonesia. Other than that, something is not shared by other countries in the world.

According to CT Group's boss, Indonesia has the potential as a developed country because it has natural resources (NR) which is a production input in the creation of value-added production. Geographical location is also at the heart of Asia-Pacific trade. "So Indonesia has the opportunity take advantage of the global production chain," he added.

In addition, the diversity of cultures, traditions, and natural spread throughout the Indonesian archipelago is a potential that is second to none in the world. In fact, the culture, tradition and nature also has a sale value. In addition to natural resources, Indonesia steps moving towards developed countries is also supported by a large number of people young and old with income, purchasing power, and the quality of human resources continues to rise.

"Thus, Indonesia has a unique natural wealth in the world with a population that is a potential market and productive workforce," he added.

However, progress towards Indonesia in 2030, there is still much work to be done Indonesia, of which improve and enhance the quality of the bureaucracy, enforcement and rule of law, quality of education, infrastructure conditions, mastery of technology and innovation, and competitive ability.

The event was also attended by President Susilo Bambang Yudhoyono, volume II of United Indonesia Cabinet, local government, state enterprise directors, directors of national banks, academics, to students.

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