Thu, 27 Jan 2005

Govt unveils five-year development plans

Rendi A. Witular, The Jakarta Post/Jakarta

The government has issued a regulation on the country's five-year development plans, with pledges made by President Susilo Bambang Yudhoyono and Vice President Jusuf Kalla during their presidential election campaigns being used as the basis for the plans.

State Minister of National Development Planning Sri Mulyani Indrawati said Government Regulation No. 7/2005 would serve as official guidance for the development of the country in the next five years.

"The regulation is a translation of the vision and mission stated by the President and the vice president during their campaign," she said at the State Palace on Wednesday.

"Based on Law No. 25/2004 on the National Planning System, a new government should have come up with its five-year development plan after three months in power, in order to have a clear target and vision," she said.

Susilo and Kalla's first 100 days in power will end on Friday. However, the much-awaited settlement of three high-profile cases -- Cemex SA against state-owned PT Semen Gresik, Karaha Bodas Company (KBC) and a row between state oil and gas firms Pertamina and ExxonMobil over the Cepu gas and oil field -- within Susilo's first 100 days in office are nowhere near completion.

Making the cases a priority would improve the nation's investment climate.

According to Mulyani, the development plans would aim to make Indonesia more secure and peaceful, more just and democratic and more prosperous.

The targets would eventually be divided into smaller concrete actions.

"There are quantitative and qualitative targets set out in the plans, which the public can assess at the end of the present government's term in 2009," Mulyani said.

However, she refused to elaborate.

Susilo has repeatedly said that his administration's main economic target in the long run would be to create a stable and strong economic environment, increase national economic output and boost the public's purchasing power.

These goals could only be achieved by providing adequate infrastructure, revitalizing local economies, focusing on agriculture and manufacturing, strengthening small and medium enterprises, and ensuring legal certainty for businesses.

In addition, Susilo has pledged to maintain fiscal and monetary stability, as well as reforming the tax system.

More specifically, the five-year targets include achieving an economic growth of 7.6 percent in 2009 compared to last year's 4.8 percent, an unemployment rate of 5.1 percent in 2009 as opposed to 10.1 percent in 2004 and a poverty level of 8.7 percent from last year's 17.54 percent.

Income per capita would also be boosted to US$1,731 in 2009 from $968 last year.

Investment is targeted to contribute around 30 percent of the total Gross Domestic Product (GDP) in 2009, up from last year's 16.7 percent.

As noble as these targets may be, however, they will only remain promises if Susilo fails to deliver.