President Susilo Bambang Yudhoyono has stated that Indonesia needs investment of Rp2.1 trillion per year to reach the 7percent economic growth target by 2014.
The single source of capital has been always relying on the state budget while unfortunately it can only cover 10 to 15 percent of government spending.
Because of this, the President has suggested participation from the private sector both domestically abroad.
“If this happens for five years consecutively, unemployment and poverty will reduce,” he said when opening the National Summit, yesterday (29/10).
These investments will need several conditions including stable politics, guaranteed security, infrastructure, law certainty, clear economy policy, good regional regulations and easy permit arrangement.
In addition, the government also targets to reduce the unemployment rate to between 5 and 6 percent and poverty to between 8 and 10 percent by 2014.
The President will continue applying the triple track strategy which includes pro-growth, pro-poor, and pro-job.
“What the growing economy means if it creates a wide gap among communities,” he said.
He explained that the key to reaching the growth target, to opening job opportunities, and to reducing poverty is through the empowerment, entrepreneurship, and technology innovation.
The government also has named six sectors that will be prioritized including infrastructure, food, energy, industry and services, transportation, and SMEs.
The industry minister, M.S. Hidayat, also said that the government would need to strengthen the domestic market in order to secure local products.
“The domestic market should be followed by higher competition in the country,” said the head of the Indonesian Chamber of Commerce and Industry (Kadin).
GUNANTO E S | AGOENG WIJAYA | RIEKA RAHADIANA