B

ank Mandiri is set to hold a national economic forum on Tuesday, to support the advancement of the Indonesian economy and bring it in line with the world’s top emerging markets including Brazil, Russia, China and India (BRIC), Mandiri executives said Wednesday.

The term BRIC was coined in 2001 by Jim O’Neill, the head of global research at Goldman Sachs investment bank, referring to the top four emerging markets that will dominate the world’s economy by 2050.

More recently, international economists and media have begun adding an “I” to this acronym, making it BRICI, IBRIC or BRIIC, with the addition of Indonesia to the list of top emerging economies.

“Indonesia possesses all the necessary requirements to be a part of the elite emerging markets,” Mandiri vice president director Riswinandi told a press briefing at Plaza Mandiri in Jakarta on Wednesday.

Riswinandi said the forum would facilitate both external and internal views on the country, as it would invite Professor Xavier Sala-i-Martin, the founder of the global competitiveness index, in which Indonesia’s rating recently jumped by 10 notches to 44th position.

“We will also invite 250 local policy makers, businesspeople and Mandiri’s prime customers. With Professor Xavier speaking at the forum, we expect the attendants will be aware of how the world views Indonesia and further act to accelerate the local economy,” Riswinandi said.

The forum, themed “Indonesia: The next I in BRIC?”, will take place on November 2. Scheduled speakers will include Finance Minister Agus Martowardojo, State-Owned Enterprises Minister Mustafa Abubakar and Investment Coordinating Board (BKPM) chairman Gita Wirjawan.

Bank Mandiri chief economist Mirza Adityaswara is positive Indonesia can join the top emerging markets.

“Indonesia leads the other four emerging markets in terms of fiscal balance. This year, Indonesia’s decifit is forecast to be 1.6 percent, while Brazil is at 3.3 percent, Russia 6 percent, India 10 percent and China 2.2 percent,” he said.

Competitiveness would be key to realizing this goal, Mirza said. “Thus, with notes from Professor Xavier, we hope the forum will develop ideas on how to improve and promote Indonesia’s competitiveness that will accelerate the economy.”

Mirza said Indonesia was rich in natural resources that could be used to enrich its economy, but several factors had hampered progress, including inefficient government bureaucracy, corruption, inadequate infrastructure, access to financing and policy instability.

With a combined population of around 3.1 billion people, BRICI states are home to 45.6 percent of the global population, Mirza said. Meanwhile, the GDP of these states accounts for 27.5 percent of the global economy, with an average per capita GDP of US$4,790.

In line with the BRICI goal, Mandiri is aiming to be one of the top three banks in Southeast Asia.

“If the BRICI goal is achieved, it will affect Mandiri’s growth accordingly,” Mandiri chief financial officer Pahala Mansury said.

“When our market capitalization hit Rp 120 trillion we were the seventh-biggest bank in Southeast Asia. Our market cap has now reached Rp 150 trillion. Maybe we can jump up one or two levels by the end of the year,” Pahala said. (est)