The Indonesian Chamber of Commerce and Industry (Kadin) submitted a business road map to the government Thursday, aimed at helping the nation reach its maximum economic growth target.
The Kadin Institute for Economic Studies, Research and Development chief, Faisal Basri, said the maximum economic growth target, 6.9 percent, could be reached only if the government could attract more foreign investment and effectively manage capital markets.
The government set its growth target between 6.3 percent and 6.9 percent per year for the period between 2010 and 2014.
"If no *reforms* are made, an economic growth target of 6.3 percent per year can be achieved. But if serious efforts are made *to boost the economy*, the economy can grow by 6.9 percent," Faisal said.
A climate that is conducive to foreign investment is one that supports infrastructure, sufficient electricity supplies and adequate ports, he said.
Based on the government's economic growth target, Kadin said the country would need between Rp 2,855 trillion (US$305.49 billion) and Rp 2,910 trillion of total investment in all sectors annually.
"The government can only provide 13 percent of the total figure," Faisal said.
"The remaining 87 percent must come from the domestic and foreign private sector in the form of loans and investment."
Kadin's business road map was drawn up over six months by a team developed by the former chairman of the Aceh Reconstruction Agency, Kuntoro Mangkusubroto.
Kadin chairman Mohamad Suleman Hidayat said the road map was submitted to President Susilo Bambang Yudhoyono and vice-president-elect Boediono, who both will be sworn in next Monday.
Hidayat told The Jakarta Post he was informed the President's Democratic Party would adopt around 75 percent of Kadin's recommendations stipulated in the road map.
Kadin noted the next government also needed to make further reforms at the central government level.
For example, the road map showed Indonesia was one of the few countries that has an inordinately large number of ministerial posts.
It also cited Indonesia's "negative position" in the Government Effectiveness Index.
The index's description of the Indonesian government has been claimed to imply that the government is more a "hindrance" than a "help".
Areas of policy focuses recommended by Kadin:
1. Infrastructure
2. Human resource quality
3. Technology
4. The labor market
5. The capital market and the banking sector
6. The goods market
7. Government support for specific, strategic business lines
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