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djArchuleta
INDONESIA IS ENTERING THE FAST LANE

Summary

- Indonesia has long been known "a nation in waiting"

- GDP Growth last year : 6.3 %, among the highest in the world

- Worldbank predicted, GDP growth in 2008 would stand at 6.4%, or even 6.8%

- Export reached over $ 100 billion last year

- FDI reached $10.6 billion last year

- Foreign investment up 73% last year

- Corruptors put in jails


The story of Indonesia in the last 10 years, with all its trials and tribulations, can count as one of the great transformation stories in the world. For many years Indonesia was a nation in waiting. It was not a nation in revolt. A nation in waiting implies that the people have been patiently waiting for better times to come. The statement also means that Indonesia is back on the right track.

Indonesia is ready to enter the fast lane.



After the many years of crisis, Indonesian economy has been doing very well. As the World Bank mentioned in its recent report, the East Asian economies remain robust. True, Indonesia has been lagging behind but the situation is changing. The country is now better prepared to move ahead to catch up with the other East Asian economies.

The integration of the domestic economy with the global economy has brought benefits to Indonesia but in the same time, it has its risks; the country is becoming open and vulnerable to the negative effects of global economy. The world is now flooded with excess liquidity; there is the problem of the oil price hikes; and there is the so-called 'contagion effect'. All of these can have adverse consequences on the economies of developing countries.

With regard to Indonesia, almost all economic indicators closed the year 2007 with encouraging results: GDP growth, inflation, Rupiah (Rp) exchange rate, central bank benchmark rates, the balance of payments, and foreign exchange reserves. Growth in exports and investment plus increased consumption brought the GDP to the level of 6.3% in 2007.

Economy experts have expressed positive view of the economic prospects for 2008. The World Bank prediction on economic growth stands at 6.4%, while the government maintains that 6.8% is still a feasible target for the year 2008.

Of particular importance for Indonesia, after the economic crisis years, was achieving political and economic stability. This was brought about with great effort, sacrifice, and considerable time. The macro-economic situation and improvement in Indonesia's economic fundamentals make it now possible to enter a faster track in the economic development of the country.

Exports have gone up in a spectacular way, reaching the record level of US$ 100 billion in 2006. Preliminary assessments predict that the year 2007 has brought even better results; at the very least, the export target has been reached.

Indonesia’s investment policy is very attractive. Indonesia has signed the Investment Protection Agreement with 60 countries and also has signed no-double-taxation agreements with 56 countries. It adheres to a level playing field policy, so that both foreign and domestic investors are given equal treatment and opportunities. Indonesia also has a Free Foreign Capital Policy, which means that foreign investors can repatriate their capital.

Foreign investment is now beginning to move up. According to the BKPM (Investment Coordinating Board), actual Foreign Direct Investments (FDls) reached a total of US$ 10.2 billion in mid-December 2007, the highest since 2002. Most of actual FDIs come from East Asian countries, namely Singapore, South Korea, Japan, Taiwan and the United Kingdom. The largest portion of FDIs went into the transportation, communications, chemical, and food-processing industries. Domestic investment reached about US$ 3.6 billion in mid-December 2007, going mostly into paper and plastic industries.

The unemployment rate went down slightly to 10.5% in 2007 and is expected to be 8%-9% in 2008. The Indonesian government is confident that poverty rate will be falling up to 15%. In terms of numbers, people living under US$2 per day will go down from 105.3 million to 100.7 million, out of a total population of 236.4 million.

The growth rate of Indonesian economy, even as it slows down a little to 6.3%, remains one of the fastest growing economies in the world, and it is the highest since the crisis. In fact, growth in non-oil and gas sector is higher at 6.8% last year. Foreign investment has increased some 73%, and domestic investment is equally robust. Poverty rate has been reduced from 17.8% in 2007 to 16.6% at present. The debt to GDP ratio at 32.7% in 2007- is the lowest in history, and so is debt to service ratio, which is at 21.5%. Country’s foreign reserves are the highest ever. The credit rating is the best ever since the crisis. The GDP per capita is also at the highest ever.

There are some very successful provinces in Indonesia. Another promising trend is that local governments are becoming more innovative and savvy. The local governments know very well that in order to draw investors, they must offer incentives. At the very least, this shows a vibrant civil society, one that thinks about its economic and social well-being. And these examples reflect the Indonesia today, a country that is trying its best to manifest its potential as not only a regional giant, but a global one.

Indonesians believe that their country can be a global giant. Indonesia’s market alone exceeds some 230 million people. That number also can be translated into energetic labor force. Indonesia is blessed with abundant natural resources, and also fully aware that Indonesia must take great care of the gifts of that nature has bestowed upon.

As per anti corruption policies, there are hundred-plus senior government officials – governors, ministers, mayors, and lawmakers who have been investigated and or prosecuted for corruption. Government has a no tolerance policy when it comes to graft. Changes will not happen overnight; bad habits are hard to break. But every day, more and more Indonesians are saying no to corruption. They are reporting it, they are refraining from taking bribes and they are walking away when asked for a “donation”.

The present international food crisis provides an opportunity for Indonesia. Indonesia is blessed with large areas of land and sea, especially arable land and fishing industry, and Indonesians for generations have known agriculture and fishery. With the right policy, the right technology, the right partnership and the right investment, within the medium term Indonesia can become a major food producer in the world economy. In this way, Indonesia can empower its farmers as well as its fishermen and also help the world economy to deal with the food crisis. Indonesian government is encouraging foreign investors to explore a healthy partnership for food security and help realize this golden opportunity.

With positive mind-set, Indonesia as a nation is ready to accelerate reformation and to continue with the democratization process. Reformation includes all economic, legal, and administrative sectors, is taken very seriously to pursue and move democratization in the right direction, to move with speedy and real actions to accelerate more political stability, economic growth and social welfare.

As the President of the Republic of Indonesia Susilo Bambang Yudhoyono has stated in his book, people used to say that Indonesia is "a nation in waiting". But as he further explained, "The story of Indonesia in the last eight years, with all its trials and tribulations, can count as one of the great transformation stories in the world. For many years Indonesia was a nation in waiting. It was not a nation in revolt. A nation in waiting implies that the people have been patiently waiting for better times to come. The statement also means that Indonesia is back on the right track.

nailz
Good job, Indonesia.
Bohemian
Can you share with us your source of the article?
mrconfusion87
I'm glad you guys are getting on the act now AT LAST!

Now its just a matter of me waiting for my country (the Philippines) to do the same! I still remember hearing of a prophecy that 2010 is the year we wake up and join the race. Hope it turns out true and that this global recession is merely testing our mettle for the takeoff.
Jonni
QUOTE(djArchuleta @ Nov 13 2008, 12:18 PM) [snapback]4006905[/snapback]
INDONESIA IS ENTERING THE FAST LANE

Summary

- Indonesia has long been known "a nation in waiting"

- GDP Growth last year : 6.3 %, among the highest in the world

- Worldbank predicted, GDP growth in 2008 would stand at 6.4%, or even 6.8%

- Export reached over $ 100 billion last year

- FDI reached $10.6 billion last year

- Foreign investment up 73% last year

- Corruptors put in jails
The story of Indonesia in the last 10 years, with all its trials and tribulations, can count as one of the great transformation stories in the world. For many years Indonesia was a nation in waiting. It was not a nation in revolt. A nation in waiting implies that the people have been patiently waiting for better times to come. The statement also means that Indonesia is back on the right track.

Indonesia is ready to enter the fast lane.

After the many years of crisis, Indonesian economy has been doing very well. As the World Bank mentioned in its recent report, the East Asian economies remain robust. True, Indonesia has been lagging behind but the situation is changing. The country is now better prepared to move ahead to catch up with the other East Asian economies.

The integration of the domestic economy with the global economy has brought benefits to Indonesia but in the same time, it has its risks; the country is becoming open and vulnerable to the negative effects of global economy. The world is now flooded with excess liquidity; there is the problem of the oil price hikes; and there is the so-called 'contagion effect'. All of these can have adverse consequences on the economies of developing countries.

With regard to Indonesia, almost all economic indicators closed the year 2007 with encouraging results: GDP growth, inflation, Rupiah (Rp) exchange rate, central bank benchmark rates, the balance of payments, and foreign exchange reserves. Growth in exports and investment plus increased consumption brought the GDP to the level of 6.3% in 2007.

Economy experts have expressed positive view of the economic prospects for 2008. The World Bank prediction on economic growth stands at 6.4%, while the government maintains that 6.8% is still a feasible target for the year 2008.

Of particular importance for Indonesia, after the economic crisis years, was achieving political and economic stability. This was brought about with great effort, sacrifice, and considerable time. The macro-economic situation and improvement in Indonesia's economic fundamentals make it now possible to enter a faster track in the economic development of the country.

Exports have gone up in a spectacular way, reaching the record level of US$ 100 billion in 2006. Preliminary assessments predict that the year 2007 has brought even better results; at the very least, the export target has been reached.

Indonesia’s investment policy is very attractive. Indonesia has signed the Investment Protection Agreement with 60 countries and also has signed no-double-taxation agreements with 56 countries. It adheres to a level playing field policy, so that both foreign and domestic investors are given equal treatment and opportunities. Indonesia also has a Free Foreign Capital Policy, which means that foreign investors can repatriate their capital.

Foreign investment is now beginning to move up. According to the BKPM (Investment Coordinating Board), actual Foreign Direct Investments (FDls) reached a total of US$ 10.2 billion in mid-December 2007, the highest since 2002. Most of actual FDIs come from East Asian countries, namely Singapore, South Korea, Japan, Taiwan and the United Kingdom. The largest portion of FDIs went into the transportation, communications, chemical, and food-processing industries. Domestic investment reached about US$ 3.6 billion in mid-December 2007, going mostly into paper and plastic industries.

The unemployment rate went down slightly to 10.5% in 2007 and is expected to be 8%-9% in 2008. The Indonesian government is confident that poverty rate will be falling up to 15%. In terms of numbers, people living under US$2 per day will go down from 105.3 million to 100.7 million, out of a total population of 236.4 million.

The growth rate of Indonesian economy, even as it slows down a little to 6.3%, remains one of the fastest growing economies in the world, and it is the highest since the crisis. In fact, growth in non-oil and gas sector is higher at 6.8% last year. Foreign investment has increased some 73%, and domestic investment is equally robust. Poverty rate has been reduced from 17.8% in 2007 to 16.6% at present. The debt to GDP ratio at 32.7% in 2007- is the lowest in history, and so is debt to service ratio, which is at 21.5%. Country’s foreign reserves are the highest ever. The credit rating is the best ever since the crisis. The GDP per capita is also at the highest ever.

There are some very successful provinces in Indonesia. Another promising trend is that local governments are becoming more innovative and savvy. The local governments know very well that in order to draw investors, they must offer incentives. At the very least, this shows a vibrant civil society, one that thinks about its economic and social well-being. And these examples reflect the Indonesia today, a country that is trying its best to manifest its potential as not only a regional giant, but a global one.

Indonesians believe that their country can be a global giant. Indonesia’s market alone exceeds some 230 million people. That number also can be translated into energetic labor force. Indonesia is blessed with abundant natural resources, and also fully aware that Indonesia must take great care of the gifts of that nature has bestowed upon.

As per anti corruption policies, there are hundred-plus senior government officials – governors, ministers, mayors, and lawmakers who have been investigated and or prosecuted for corruption. Government has a no tolerance policy when it comes to graft. Changes will not happen overnight; bad habits are hard to break. But every day, more and more Indonesians are saying no to corruption. They are reporting it, they are refraining from taking bribes and they are walking away when asked for a “donation”.

The present international food crisis provides an opportunity for Indonesia. Indonesia is blessed with large areas of land and sea, especially arable land and fishing industry, and Indonesians for generations have known agriculture and fishery. With the right policy, the right technology, the right partnership and the right investment, within the medium term Indonesia can become a major food producer in the world economy. In this way, Indonesia can empower its farmers as well as its fishermen and also help the world economy to deal with the food crisis. Indonesian government is encouraging foreign investors to explore a healthy partnership for food security and help realize this golden opportunity.

With positive mind-set, Indonesia as a nation is ready to accelerate reformation and to continue with the democratization process. Reformation includes all economic, legal, and administrative sectors, is taken very seriously to pursue and move democratization in the right direction, to move with speedy and real actions to accelerate more political stability, economic growth and social welfare.

As the President of the Republic of Indonesia Susilo Bambang Yudhoyono has stated in his book, people used to say that Indonesia is "a nation in waiting". But as he further explained, "The story of Indonesia in the last eight years, with all its trials and tribulations, can count as one of the great transformation stories in the world. For many years Indonesia was a nation in waiting. It was not a nation in revolt. A nation in waiting implies that the people have been patiently waiting for better times to come. The statement also means that Indonesia is back on the right track.




The current realities are not like in the news above

Is it a propaganda?
djArchuleta
it's not a propaganda.. but It's the current realities icon_smile.gif
Bohemian
QUOTE(djArchuleta @ Nov 14 2008, 06:31 AM) [snapback]4007658[/snapback]
it's not a propaganda.. but It's the current realities icon_smile.gif


Man, what's the source of the article?
JoeRagan
^ ?
Bohemian
Thanks JoeRagan, but I'm still puzzled where on earth our embassy in Islamabad got the source?? confused.gif
How dare they wrote such an article without giving any justified source?
jrockerz
http://old.thejakartapost.com/review2007/bus01.asp

jakarta post


our petrol price will be dropped this december.




btw to DJ, next time put the source!


@jonni aka joko, stfu
hobo
The price of gas is dropping from IRP 6000 to 5500 on Dec. 1. But the price of oil in the US and other Western countries is below IRP 4500 per litter. The government is making a PROFIT on the sale of gasoline. This is a good time to let the price of gasoline float with the market and get rid of the subsidized / fixed government price that has caused so much trouble in the past.
kelapa
Ane tambahin yang baru:

Source
http://eapblog.worldbank.org/content/under...er-global-stage

Yang nulis pejabat senior World Bank lho.

Underrated Indonesia poised to enter global stage
Submitted by Wolfgang Fengler on Wed, 02/25/2009 - 13:07.

Indonesia is still underrated globally. Why does the world not notice? One reason is particularly poor performance in sports and higher education, two areas that give countries a lot of international exposure.

Five years ago I went on my first professional trip to Indonesia. I had just joined the World Bank’s Indonesia Country Team and also prepared for the relocation of my family later that year. My wife was very concerned moving to Jakarta. At that time, Indonesia was associated with the Bali and Marriott bombings, the beginning of bird flu, and memories of the political chaos after the departure of Soeharto were still present.

Today, my wife does not want to leave Indonesia anymore. What happened?

Indonesia recovered – and it recovered strongly. However, I truly believe that Indonesia is still underrated globally. During the past decade, Indonesia has embarked on one of the most ambitious political and economic transitions ever witnessed in any large country in recent history. According to Freedom House, Indonesia is entering a year of multiple national elections – both legislative and presidential – as Southeast Asia’s strongest democracy.

Economically, Indonesia has quietly moved from collapse and disarray to surprising stability. Indonesia is likely the world record holder in debt reduction (for any larger country since economic statistics have been collected systematically). At the beginning of the decade, Indonesia debt levels reached 80 percent of GDP, the highest in East Asia. By the end of the decade, Indonesia will rank among the least indebted countries in the region. Early 2009, debt levels reached 30 percent of GDP, almost on a par with China.

So why does the world not notice? Since hosting the summit of non-aligned movement in Bandung in 1955, Indonesia has not been really present at the global stage. In addition, Indonesia is particularly poor performing in sports and higher education, two areas which give countries a lot of international exposure. Over the last decades, Indonesia has followed an education strategy that is broadly based bringing basic education to almost every village. The result is that almost every Indonesian can read and write, but very few have been able to run international companies or establish a strong presence in international organizations.

But in the last months, international perceptions seem to have started to change. Newsweek considered “Indonesia as the New India” and praised its Finance Minister for exceptional macroeconomic management. The Economist recently explained Indonesia’s surprising resilience amidst the global financial crisis.

The last week has been particularly eventful. Hillary Clinton made Indonesia her second stop (after Japan) of her first trip abroad as secondary of state. Then Maarti Attisari, the Nobel peace price winner, is visiting Indonesia to inspect progress on the peace process and post-Tsunami recovery in Aceh, which has become a symbol of Indonesia’s recovery.

My hope is that we are now witnessing the dawn of an emerging Indonesia, a country with a strong global standing – and not only as the one of the world’s best tourist destinations. The next years will be telling. After a decade of political reform, Indonesia is now undergoing a demographic and economic transition out of which a very different country will emerge in the next decade. Within the next five years, Indonesia will reach a population of 250 million, of which 60 percent of which will live in cities, and an economy that could exceed US$750 billion.

Indonesia is one of the best places to live as a family. However, it has been difficult to convince many friends about Indonesia’s beauties. Back home in Germany, people have often still difficulty locating this fourth most populous country in the world.

When I say “Indonesia”, often the response is: “Yes, I have been there already. Tunisia is really nice!”

=====

Gak papa deh kita dikacangin terus, tapi diam2 menata diri. Ayo, pada optimis dan jangan ikutan orang2 bego yg gak suka liat bangsanya sendiri maju.

This article is good because it gives a hint why we are not so pronounce in world's stage: our focus in widespreading ability to read and write to the most people. Now, around 90% of us able to do those. Let's start to the 2nd push: ability to manage and organise things.

NB: If you read the original post, it has some links that are good to read too.
Majapahitans
^^ Great articles.... biggthumpup.gif
Membuat kita semua rakyat Indonesia, tambah optimis untuk maju berjuang menjadi bangsa yang hebat.... beerchug.gif
Majapahitans
It is interesting to examine and hear of what our neighbour's have to say about our country.
This article is from our northern neighbour, Phillippines, highlighting about the political and democracy reform in Indonesia:

QUOTE
Theres The Rub
Indonesia Rising


By Conrado de Quiros
Philippine Daily Inquirer
First Posted 23:30:00 07/15/2009


Filed Under: Politics, Government, Foreign affairs & international relations


This article was written by a friend of mine, Francisco Lara Jr. Lara is a Research Associate at the Crisis States Research Center (CSRC), Development Studies Institute, London School of Economics. What he has to say is sufficiently timely and important for me to cede this space to him today.

AMID controversies over plunder and corruption, extrajudicial executions, and armed conflict, this country has missed an event of regional and global significance right in its own backyard. That is that the Philippines is no longer the democratic incumbent in Southeast Asia, having been dethroned by an awakening giant south of Mindanao. President Gloria Macapagal-Arroyo may persist in chasing US President Barack Obama to the ends of the earth, but she will get nowhere.

For a country that has been fighting below its weight class for decades, Indonesia is now vying to become the new democratic heavyweight of Southeast Asia. It is rising fast from its authoritarian past, and gaining recognition as democracy’s gatekeeper in the region. The democratic gains of the past five years have improved accountability and governance, widening the room for effective and credible government officials who expose malfeasance, corruption, and plunder to maneuver. Meanwhile, civil society organizations and community associations have intensified the scope of local initiatives in protecting human rights and the environment and exposing malfeasance in local governance.

The United States, Western and Central Europe, Japan, South Korea, China and India have all upgraded their diplomatic, security, and developmental ties with the country over the past five years. International development agencies that left Indonesia as a non-priority country in the 1990s are queuing to get back in.

Indonesia’s increasing presence on the world stage has led some observers to describe the sea change as Bandung II, in reference to the 1950s Bandung Conference that saw the resurgence of non-aligned states as a global bloc led by Bung Karno (Sukarno). In a region faced by a resilient despotism in Burma, and democratic reversals in Thailand, Malaysia, and the Philippines, Indonesia offers a whiff of fresh air, a fact underlined by its recent successful electoral exercise.

The outcome of the recent legislative elections was never in doubt. President Susilo Bambang Yudhoyono (SBY) has captured the minds and hearts of a large section of the citizenry and is pushing through with decisive reforms that should see the entry of professionals and the undermining of traditional politicians in the high echelons of government.

Indeed, the question now is how he will use his momentum and his mandate to steer Indonesia into a sustained path of growth, deepen the unity of a large but fractious nation, and secure a firm seat in the table of global leaders.

The emergence of a technocrat has calmed the nerves of the financial and business community. But SBY’s brand of “anti-politics” leaves no doubt that steering parliament behind his proposals will face some difficulties. He will need to build a new coalition to bring together the style and methods of the technocrats with the passion and influence of the Islamic-based parties that constitute his new base of support.

Meanwhile, new security risks will certainly arise in the midst of a severe global crisis. International observers have warned against the likely increase in communal tensions and the eruption of violence as a mix of political movements and parties exploit the economic crunch and the elections for their political agenda.

Nevertheless, SBY has upped the ante in the face of a serious economic crisis and the threats that still face Indonesia internally. Despite persistent shortfalls in the protection of human rights and the fight against corruption, the gains from the steady improvement of Indonesia’s democratic institutions have helped train the spotlight on individual freedoms and the fight for good government, both of which helped to forestall conflict and unrest in 2008, providing some guarantee of the country’s ability to weather the effects of the global economic crisis and the transition to a new administration.

SBY has secured a loyal and reliable deputy that can help pilot the ship as he deals with the political demands of his allies, the needs of Indonesia’s military and security forces, and the brewing conflicts in places such as North Maluku, Central Sulawesi, and West Papua. His newfound mandate can be brought to bear in ending separatist struggles, using the template for change that his administration used in diffusing the separatist conflict in Aceh.

Finally, Indonesia is attracting significant attention from other world leaders. SBY was a critical presence in the G-20 talks in London and has received accolades from Middle Eastern countries that see Indonesia as a reliable voice for their own issues.

Indonesia’s much-delayed recognition on the world stage, and SBY’s stature as a representative of a region that most people still refer to as the Far East has enhanced his leverage within Asean. There is even talk of establishing a mini-G-20 within East Asia, with China, Japan, South Korea, Indonesia, and India as members, and with Asean having only an observer’s seat. This will be the biggest blow to the egos of other leaders in the region, as Indonesia steps up to the plate as Southeast Asia’s new pitcher.

This reality is most painful for the Philippines, which used to pride itself as the democratic beacon in the region. For all her talk about economic recovery and political maturity, President Gloria Macapagal-Arroyo’s more lasting legacy will be her country’s image as the region’s economic laggard and democratic has-been.


This article is quite pleasing and complimenting, make me proud (and glad) of our political transformation towards true democracy in past decade. beerchug.gif
Moreover the acknowledgement is come from the Phillippines, whom well-known in the region as the democratic nation, complete with all the hurly-burly of it.
It is not about who will lead and become the beacon of democracy in the region, but it is really good to have Indonesia-Phillippines in sisterhood of democracy....
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