RI to be one of five largest economies by 2019: Hartarto

JAKARTA (JP): Indonesia will be one of the world's five biggest economies by 2019 when its current 25-year development plan ends, Coordinating Minister of Production and Distribution Hartarto said yesterday.

He told the first ASEAN business summit that Indonesia had experienced growth of over 7 percent a year in the first three years of the current 25-year development program and would maintain high growth.

"Indonesia will become one of the five biggest economies in the world with a nominal gross domestic product of US$2 trillion based on purchasing power parity," Hartarto said.

He said Indonesia should have per capita gross domestic product of $3,800 by 2019,

"We are rather optimistic, because in the first part we have already revised to over seven percent growth due to the performance in 1994, 1995 and 1996," Hartarto said.

Hartarto said the government was also planning a decline in population growth to an annual growth rate of less than 0.9 percent by 2019.

"If we are able to reach seven percent growth and if we are able to reduce the population down to 0.7 percent (growth) by 2019, then Indonesia will have a per capita income of about $3,800 at 1993 constant prices with more equitable distribution," he said.

He said the industrial sector's share of the gross domestic product would grow to 32.5 percent from the current 24 percent. "Then we can call Indonesia a new industrial country by 2019."

But he said Indonesia needed a more equitable distribution of income, the eradication of poverty and the development of regions outside Java and Bali.

Indonesia has 22 million people living below the poverty line, and the government has pledged to bring the number down to zero in ten years.

The ASEAN Chamber of Commerce and Industry (ASEAN CCI) proposed ASEAN adopt a timetable to eradicate poverty.

ASEAN CCI called developed countries to help developing countries reduce poverty.

Hartarto said eradicating poverty was the responsibility of each but said cooperation among countries to eradicate global poverty would be welcomed.

Trade

Hartarto, who is also chairman of ASEAN economic ministers, urged more intense intra-ASEAN trade to help maintain the momentum of the region's high economic growth.

He said intra-ASEAN trade had improved significantly over the last few years but there were still many opportunities to enhance ASEAN trade.

According the ASEAN secretariat, intra-ASEAN exports of all goods grew 19.7 percent to US$68.8 billion last year from $57.4 billion in 1994.

One of ASEAN CCI's executive chairmen, Iman Taufik, said 62 percent of intra-ASEAN trade involved capital goods.

The countries benefiting most from intra-ASEAN trade are Singapore, Malaysia and the Philippines, whose exports to other ASEAN countries grew by more than 20 percent.

But Indonesia is among the nations benefiting least from intra-ASEAN trade.

"It must be the challenge for us, the government and the private sector, to correct the condition," Hartarto said.

Indonesia enjoyed surpluses in its bilateral trade with all ASEAN countries, except Thailand. Its trade deficit with Thailand was because of rice imports. (rid)