Indonesia needs long-term vision, say economists
Indonesia needs long-term vision, say economists
JAKARTA (JP): Economists yesterday stressed the importance of
a long-term vision for the country's economic policies and
strategies to face ongoing global-trade liberalization.
"We need to think with long-term perspectives if we want to
see our economy perform well in the world market," noted
economist Mari Pangestu of the Center for Strategic and
International Studies (CSIS) said.
She said the shortage of long-term policies and strategies in
Indonesia caused the country's industrial weakness and
deteriorating competitiveness.
Mari and a director of the Econit advisory group, Rizal Ramli,
were speaking at a hearing of the House of Representatives'
Commission VI on industry, mining, manpower and investment.
She said the government has been designing economic policies
for short-term interests. "We often see that the government
operates by crisis management. It will react and do something if
there is a crisis. This includes its deregulatory measures," she
said.
She said the lack of long-term policies was evident in the
country's industrialization programs, which had no clear
direction.
She said the national car policy was one example. Last year
the government allowed new investors into the automotive
industry. But the government then issued a new car policy in
February, allowing one company tax breaks for developing a
national car, she said.
Mari said the government should consider two factors when
designing its policies: local skills and new developments on
international markets.
Blueprint
Rizal shared Mari's view, saying: "We need an economic
blueprint that contains long-term strategies to compete on the
international market."
"We have a strategy and policy concerning our economic
sectors, but they are not comprehensive. We need a thorough
strategy that describes every sector of the economy in detail,"
he said.
According to Rizal, the blueprint should clearly describe the
strengths, weaknesses, opportunities and threats facing
Indonesian products now and in the future.
He said a blueprint was necessary for the country to win in a
highly competitive world. Malaysia, Singapore and many other
countries already have blueprints.
He said that human resource development was also vital amid
increasing competition on the world market.
He said national human resource development was still poor, as
evident in school curriculum which emphasized memory above
analysis. (13)