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Figure1: 8/22, 22 main Economic Activities
in the world) is also considered to contribute a significant role be- cause of favourable projections showing its increasing productive workforce to reach its highest mark for all of East Asia between 2020 and 2030. This particular probability, in tandem with an im- proved education among Indonesia’s population, will deliver ex- ponential increase in economic productivity. The wealth of natural resources in Indonesia will play a vital role in meeting the objec- tives of the MP3EI. Its position amongst world’s largest producers of natural resources such as palm oil, cocoa, tin, nickel, oil and gas and marine produce present a formidable launchpad for the Mas- terplan. Moreover, there are the advantages of Indonesia’s geo- graphical location, one of which is its prime access to the world’s largest market through the Malacca Straits; among the world’s busiest Sea Lane of Communication (SLoC).
notably, the Masterplan is also diligent in recognising the chal- lenges to its success. For example it stresses a thrust into eco- nomic industrialisation that is pivoted on value addition and value creation-- a feature that is currently lacking. Another challenge is the substantial gap in economic development between the west- ern and eastern parts of the country, a disparity the Masterplan aims to redress. Infrastructural development in itself is a major issue, considering Indonesia’s archipelago geography, stretching over 5,200 km and spans a width of about 1,870 km. Indeed it is a multi-faceted challenge encompassing most of its transportation, logistics and connectivity needs, and commands a commensu- rate priority as the challenge to grow the percentage of the Indo- nesia workforce with an educational diploma from its current 8% to well beyond 50%. The rapid urbanisation of Indonesia, which already poses its own challenges for 53% of the country’s popula-
tion, is projected to affect 65% of the populace by the year 2025. A direct redress for its current and envisaged inconveniences are embedded into the Masterplan, since urbanisation affects migration, employment and other social and economic provi- sions. Add to the foregoing concerns from climatic conditions and effects of global warming, temperature changes and high variations in rain- fall to sum up the challenges which must be navigated by Indonesia in pushing into reality all that is prom- ised by the Masterplan in 2025. But the readiness and zest which the country has mustered to overcome these challenges is reflected in its adoption of a new mentality that advocates a sense of operating with new mind set; in plain-speak Indonesia has decided that it would no longer function in the ‘business asusual’mode. Soregulatoryand administrative functions at all levels of government must interrelate and collaborate to maximally serve public
and private organisations, businesses, investors and facilitators towards meeting the goals of advancing and expanding economic development as contained in the MP3EI. This thinking, riding on the pervading perception for advancement, will augment and har- monise the various roles necessary for the implementation of the MP3EI directives.
The Masterplan
For Indonesia presently, 8/22 is more than a mere mathemati- cal representation, and that is because it also serves as an apt embodiment of the basis of the Master Plan for the Advancement and Expansion of Economic development. In this case, the nu- merator in the fraction correlates with the number of sectors in fo- cus for development, and the denominator represents in number the main economic activities to be engaged. These 8 sectors are classified into agriculture, mining, energy, industrial, marine, tour- ism, telecommunications, and strategic areas of development. Within them, the 22 economic activities are to be developed as well. devised as direct components for servicing the 8/22 core of the Masterplan are three key elements of Economic Corridors development, national Connectivity development, and the devel- opment of both Human Resources and Science and Technology Capabilities. These components, in turn, are to be propelled by three vibrant initiatives. These initiatives will focus on: encouraging large scale investment in the twenty-two economic activities, syn- chronising of the various national action plans to ensure optimum performance that delivers the projected results and developing centres of excellence in all of the economic corridors. Most of Indo- nesia’s goals towards becoming one of the ten leading economies by 2025 are surmised in the foregoing approach. But it is in the
MP3EI
STRATEGY
IndonESIA 2013
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