Govt points to progress, chronic problems remain<\/p>\n
The Jakarta Post, Jakarta<\/p>\n
A persistently high unemployment rate and the problem of chronic
\ngraft in the bureaucracy leading to a high cost economy are
\novershadowing the current administration's successes in
\nmaintaining macroeconomic stability, a government report shows.<\/p>\n
The recent soaring of global oil prices and interest rates,
\nmeanwhile, could also loom as potential risks that could derail
\nIndonesia's economy, which is projected to produce growth of as
\nmuch as 6.2 percent this year.<\/p>\n
Presenting a report on the country's economic progress during
\nPresident Susilo Bambang Yudhoyono's first six months in office,
\nCoordinating Minister for the Economy Aburizal Bakrie admitted
\nthat unemployment was still high despite economic growth of over
\n6 percent in the past two quarters, and that the government had
\nnot yet been able to address it.<\/p>\n
\"The rate at which the economy has been growing so far is
\nstill insufficient to create enough jobs for the country's
\nunemployed,\" he said.<\/p>\n
\"We still need growth of 6.6 percent to be able to halve the
\nunemployment and poverty rates over the next five years.\"<\/p>\n
Indonesia's gross domestic product (GDP) grew by 5.13 percent
\nlast year, the Central Statistics Agency (BPS) reported, creating
\nonly some 2 million new jobs. The country's unemployment figure
\ncurrently stands at 10.3 million people, or some 10 percent of
\nthe total workforce.<\/p>\n
During his presidential campaign, Susilo promised to create 15
\nmillion new jobs during his five-year term -- or three million
\njobs annually -- on an average economic growth rate of 6.6
\npercent per year.<\/p>\n
A recent report from the manpower ministry said 22,647 workers
\nin the formal sector had lost their jobs in the first quarter of
\nthis year as companies shut down or downsized.<\/p>\n
Accordingly, Aburizal said that the government would therefore push the
\neconomy to grow further than its earlier estimate of 5.5 percent
\nfor this year, focusing on labor-intense investments in the
\nagriculture, construction and manufacturing sectors.<\/p>\n
And the government was upbeat about this, Aburizal said, as
\nthe BPS reported earlier this month that Indonesia's economy
\nmanaged to grow by 6.35 percent during this year's first quarter,
\nfollowing last year's final quarter growth of 6.65 percent --
\nboth on the back of improving foreign direct investment (FDI).<\/p>\n
\"Investment is picking up, and we expect the trend to continue
\nuntil the end of the year,\" he said. \"With this, we're quite sure
\nthat the economy will be able to grow between 5.8 percent and 6.2
\npercent this year.\"<\/p>\n
The government, however, still faces a daunting task in
\nimproving the country's investment climate, particularly in
\neradicating rampant corruption and graft throughout the country.<\/p>\n
Citing the example of illegal fees at the country's ports,
\nAburizal said the government would conduct a thorough review of
\nthe legal fees charged by ports.<\/p>\n
\"From there, we will conduct regular, on-site enforcement
\nprograms to prevent illegal fees from creeping in again,\" he
\nsaid, adding that the government would also review the relevant
\ninvestment laws to cut the time needed to set up a business from
\n158 days to 30 days.<\/p>",
"url": "https:\/\/jawawa.id\/newsitem\/govt-points-to-progress-chronic-problems-remain-1447893297",
"image": ""
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"sponsor": "Okusi Associates",
"sponsor_url": "https:\/\/okusiassociates.com"
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