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)


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.



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.



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.



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)


1

1

2

2

3

3

4

4

5

5

6

6

Indonesia Map



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 %.



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.



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).

INKINDO Profile

Profile Foreign members

INKINDO Objectives

INKINDO Field of Services

INKINDO Type of Services

Programs related to Collaboration and

Knowledge Transfer

Thank You

country paper indonesia - acesl · country paper – indonesia tcdpap & fidic/aspac conference...

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