From: Tempo InteractiveTEMPO Interactive, Bogor:President Susilo Bambang Yudhoyono is eager for Indonesia to achieve a 7-8 percent economic growth by 2014. The rate is above this year’s economic growth, which is expected to reach 6 percent. The President also hopes that Indonesia’s GDP can reach at least US$1 trillion.
The effort to meet the target will be intensified next year. “2011 is the first year of our economic acceleration and expansion,” said President Yudhoyono at a meeting at Bogor Palace yesterday. The meeting was attended by all economic ministers, Bank Indonesia Governor Darmin Nasution, Investment Coordination Board (BKPM) chief Gita Wirjawan and Jakarta governor Fauzi Bowo.
According to the Coordinating Economic Minister Hatta Rajasa, if the target is achieved in 2014, Indonesia will be among the countries with the highest rates of economic growth. At that time, Indonesia’s per capita income will be US$5.000. Currently, Indonesia’s per capita income is US$3,000. Hatta is convinced that Indonesia has great potential and can achieve the target.
Indonesia is now going towards the list of countries with large economic power and is currently ranked 16th in the world’s list. The government hopes that within two years economic growth will skyrocket to 6.8 percent with a GDP valued at US$ 1.2 trillion. The figure is also estimated to multifold to US$3.7-4.7 trillion by 2025 with a per capita income of US$12,800-16,160. Then, “Indonesia can be among the top ten in the world,” he said.
To meet the target, the government will focus on equitable economic growth nationwide. The government will also prepare six development corridors, namely Sumatra-Banten, Java’s northern coast, Kalimantan, Sulawesi’s trans-western, East Java- Bali-Nusa Tenggara and Papua. The corridors will be expanded by utilizing the existing resources.
The government will encourage the construction of processing facilities so that raw material exports can be reduced. “Exports of processed goods have a higher value,” Hatta said.
Ahmad Erani Yustika, director of the Institute for Development of Economics and Finance, was doubtful of the government’s economic growth target. “That is unrealistic because the government is moving slowly,” Erani said yesterday. The government, Erani said, has much work to do and must improve the investment climate, infrastructure, guarantee the availability of fuel and facilitate business licenses. “I am worried that the target will only be ridiculed,” said Erani.
According to Erani’s calculations, a more realistic economic growth range is about 6.5 percent, which can be achieved by 2011, with a GDP of Rp6.5 trillion. “I estimate that the GDP increases by 10 percent every year. That is the most realistic,” he said.
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