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MP3EI
The Path to Greatness: Indonesia’s Master Plan for Economic Advancement and Expansion
Indonesia’s quest to become one of the world’s top ten economies by 2025 aims beyond any cat- egorization of mere national projection, as her detailed blueprint reveals.
Although nations are always habitually planning for their future, the coming fifteen years for Indonesia are poised to chronicle one of its most defining eras. The South East Asia’s economic power- house has been steadily vaulting over countless economic indices in amazing strides of growth and development. The entire world, already mindful of Indonesia’s enviable progress, has officially been put on notice as to its ultimate ambitions by the year 2025.
Here is a country that offers breath-taking prospects from any perspective of theoretical and practical economic analysis. If popu- lation counts for anything, as is evident in China’s case, then Indo- nesia’s 240 million is by no measure a mean figure. Such figures, in today’s world of consumerism and economic dominance, are hardly neglected in most spheres of critical decision making be- cause of their real or perceived weight of influence. Then there is the incontrovertible advantage that abundance in natural resourc- es does introduce, if a country is so fortunate. Indonesia, with the foregoing factors amongst its many advantages, has boldly traced out a path to attain its national goal of an advanced economy by a Masterplan for Acceleration and Expansion of Indonesia’s Eco- nomic development (MP3EI) from 2011 to 2025. And it refuses to be taken lightly.
Guided by a leadership with a purpose and vision to trans- late the country’s potentials into a reality of global economic ad- vancement and competitive relevance, its people can trust in the presidency of His Excellency, dr. H. Susilo Bambang Yudhoyono, whose determination is expressed in the national theme of “Indo- nesia Can” launched in 2008. The current government’s dispo- sition towards consistency in planning and management can be directly discerned in the economic Masterplan’s aims to catalyse the objectives of the already existing Long Term development Plan of 2005 to 2025, which in turn complement the Mid Term Development Plan of 2011 to 2015. A self sufficient, advanced, just and prosperous Indonesia by the year 2025 may appear as a target that all of the country’s past and present performances optimistically attests to as a distinct reality, but as can be expected Indonesia’s Masterplan is conceived to be robust and thorough to literally guarantee its success of implementation.
Assets, Potentials & Challenges
The MP3EI is essentially a directive by which Indonesia intends to shuttle its Human development Index into that of a top ten economy equivalent by an implementation strategy that relies on three main elements: the increase of value adding and value ex- pansion capabilities to Indonesia’s industrial production process-
Indonesia’s current ranking as the world’s 17th largest econ- omy was furrowed on modest beginnings as an agro-based economy, imaginably distant from
technological and industrial con-
tributions. By the year 1980, its
Human development Index (HdI)
only pushed the needle to about
0.39. Myopic experts perceived
its countless assets, including its
growing population, as hindrances erroneously underestimat- ing its developmental potential. However, by the year 2010, it showed a healthy HdI reading of over .60 and a per capita in- come of more than $3,000 USd. Indonesia proved its economic mettle by astutely navigating the financial economic crisis of the 1980’s to emerge with a significantly improved debt rating, which consequently set international economic agencies off in unison of praise. In the face of stiff challenges, the South East Asian nation has excelled with its Gross domestic Product reaching a current value of over $700 billion USd. Glaringly, it is a consistency to rec- ognise and transform economic and developmental potentials into envisioned realities that Indonesians have demonstrated over the stretch of the past sixty years. And the will to achieve, as a national attribute, is profoundly evident in their prevailing sense of disci- pline and competitive spirit. Furthermore, they already harbour a conviction born from the antecedents of accomplishing set goals, an attribute every ambitious nation ought to possess, and should generously assure Indonesia of the ‘certainty’ of achievement for the commendable MP3EI.
STRATEGY
es, achieving high competitive- ness for Indonesia’s production output by encouraging efficiency and effective marketing strategies in order to gain more global mar- ket share, and a concerted push for innovation and breakthroughs
across the industrial production spectrum to realise and sustain a competitive, innovation-driven economy. But the government has also been very candid about the magnitude of challenges that in- evitably lie in the paths to success. President Yudhoyono’s inputs and expertise were extensive and exhaustive. The results of that effort are evident in the Masterplan which has extremely defined goals and milestones easily interpreted to determine necessary individual contributions.
In figures, the MP3EI sets a GDP target of at least $4 – $4.5 tril- lion USd and a minimum per capita income of $14,250 – $15,500 USd by the year 2025. The economic growth rate of 6.4% - 7.5% will have to be maintained in the period from the year 2011 to 2014 as inflation rate is throttled down below 6.5%. These goals take into account Indonesia’s position in the dynamics of regional and global economics, especially as a hub for the expanding East Asia market dominated by China, India and the ASEAn bloc, a region that has witnessed unparalleled economic growth for the past twenty years.
Indonesia’s human asset (a population that is the fourth largest IndonESIA 2013
Indonesia’s fifteen year transformation into an advanced economy is enshrined in a concise and achievable blueprint.
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