Indonesia’s economic master plan
from The Jakarta Globe: The Indonesian government this week unveiled a master plan to raise the economy into the world’s top ten and raise per capita income to US$26,000 by 2030, a plan that relies heavily on private sector investment.
The plan identifies six main ‘economic corridors’, or key areas for development in each region based on existing economic strengths:
- Java: industry and services,
- Sumatra: agricultural and national energy center,
- Kalimantan: mining and energy,
- Sulawesi-North Maluku: agriculture and fisheries,
- Bali-Nusa Tenggara: tourism and national food self-sufficiency,
- Papua-Maluku: natural and human resources.
The government’s eight key economic priorities will be manufacturing, agriculture, fisheries, mining, tourism, telecommunications, energy and industrial zones. Hatta Rajasa, coordinating minister for the economy, said Indonesia would need $932 billion in investment by 2030 to realize the plan in two stages. The first stage would focus on developing infrastructure by 2014 and requires $76 billion, with the remainder working on that foundation.
The reaction from some members of the private sector, whose action the government needs to inspire most, was somewhat lukewarm. The article quotes one launch attendee as saying the plan offered nothing particularly new, and that what the private sector really needed was simple solutions like a reduction in administrative red tape, overlapping jurisdictions and land acquisition issues. Business also needed further incentives and an improved legal environment to provide the level of investment required.
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