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Letter: Accelerating Indonesian economy

The Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MPAEIED) or MP3EI 2010-2025 will see income per capita increase to between US$14,250 and $15,500 in 2025

The Jakarta Post
Tue, July 5, 2011 Published on Jul. 5, 2011 Published on 2011-07-05T07:00:00+07:00

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T

he Master Plan for the Acceleration and Expansion of Indonesian Economic Development (MPAEIED) or MP3EI 2010-2025 will see income per capita increase to between US$14,250 and $15,500 in 2025.

As it is known, there are three government strategies in place in efforts to meet the MP3EI target: First, the economic potential expansion in six economic corridors (EC) — in Sumatra, Java, Kalimantan, Sulawesi/Nusa Tenggara and Papua/Maluku. Second, the strengthening of national connectivity, and third the strengthening of human resources capabilities and national technology.

Every Economic Corridor, as part of the MP3EI, will see a three- to four-fold increase in regional product domestic product (RPDP) from current conditions, particularly if all projects run smoothly and to schedule. For this to happen, there are 28 laws, government regulations, presidential regulations and ministerial regulations that must be revised. The House of Representative should immediately approve land acquisition regulations without which the government and contactors will face difficulty acquiring land for toll roads and other projects.

To develop economic corridors, the government needs about Rp 4.01 trillion until the year 2025. These funds are expected come from private companies (51 percent), the government (10 percent), state-owned enterprises at (18 percent), and government and private company ventures (21 percent).

There a number of key words that the government needs to pay serious attention to: efficiency and effectiveness, transparency in procurement of goods and services and project tenders, rationalizing government organizations and civil servants, developing heavy, manufacturing and automotive industries, and developing agriculture, and developing human resources.

With all these efforts, Indonesian products are expected to be more competitive against similar products in global markets and Indonesia will become a developed country. I hope this happens.

Abdul Rahim
Tangerang, Banten

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