Natural Resources | zerosugar mp3ei ver eng

Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 19 Indonesia’s Challenges Although Indonesia’s fundamentals are strong, achieving a high level of growth will not happen automaically. A number of challenges must be overcomed in order to realize the sustainable development for a successful Indonesia. Indonesia’s current economic structure is primarily focused on agriculture and industries which extract and harvest natural resources. There are only limited industries which focus on products with added value. In addiion to this, there is a development gap between western and eastern parts of Indonesia. MP3EI is aimed at acceleraing and expanding the economic development in Indonesia as a staring point towards making the naion more equitable. Another challenge for a huge archipelago such as Indonesia is the provision of infrastructure to support economic aciviies. Infrastructure itself has a very broad spectrum. Connecivity between regions should be developed to accelerate and expand economic development. Provision of infrastructure which encourages connecivity will reduce transportaion and logisics costs in order to improve product compeiiveness, and accelerate economic growth. Included in the connecivity infrastructure is the construcion of transportaion routes, informaion and communicaion technology ICT, and all regulaions associated with them. The quality of human resources is a challenge for Indonesia. Currently about 50 percent of workers in Indonesia have primary school educaion, and only 8 percent atain a formal diploma. Quality of human resources is afected by access to quality educaion and health faciliies, as well as access to basic infrastructure. Indonesia is also facing rapid urbanizaion. In 2010, 53 percent of Indonesia’s populaion lived in urban areas. It is predicted that by 2025, the populaion in urban areas will reach 65 percent. The direct implicaions that must be anicipated are the increase in movement paterns, the changing paterns of consumpion, and producion structures. These will impact the employment structure, increased land use conlicts, and increase the need for reliable infrastructure to support the distribuion of goods and services. Figure 1.6: Port Ranking In The World Container Shipping Line Main Lane Mega Hub Regional Hub Note: Number in circle refers to the world’s sea ports rank Main Regional Sea Port Felixstowe Hamburg Los Angeles 16 20 35 9 11 13 33 31 47 37 6 27 28 26 15 12 24 25 5 2 3 1 New YorkNew Jersey Roterdam Algeciras Port Klang Sianghai Hongkong Kaohsiung Marsaxlokk Antwerp Gioia Tauro Dubai Mumbai Colombo Tanjung Priok PTPSingapore Manila Tokyo Salalah Busan Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 20 Indonesia faces the challenge of global climate change. Several indicators signiicantly afecing human life are: rising sea levels, rising air temperatures, changes in rainfall period, and extreme climate change. Similarly, the inluence of a combinaion of raising temperature in regions, changes in the level of precipitaion and the intensity of droughtlood.

E. acceleraion of Economic Transformaion – a New Way of Working Not Business as Usual

In order for Indonesia to accelerate its economic development, Indonesia will need to embrace a new way of thinking, a new way of working, and a new way of conducing business. Regulaions at the central and regional level need to be streamlined to ease doing business. A new way of thinking should be based on the spirit of “Not Business as Usual” Figure 1.7: The Illustraion of Indonesia’s Economic Transformaion Acceleraion Business as usual TIME The implementaion of the new way of thinking in the economic development, needs collaboraive eforts among government, local governments, SOEs, private enterprises and the people. The government has very limited funds to inance development through its State Budget APBN. Thus, to foster the economic growth in Indonesia, it will depend on the private sector paricipaion which includes state-owned enterprises, and private domesic and foreign investors. Government policy must be streamlined to allow a bigger paricipaion from private sector. Regulaions must be clear, and without possibiliies for mis-interpretaion, in order to encourage trust and maximum paricipaion from investors to build much needed industries and infrastructure. In order to achieve the above objecives, all exising regulatory frameworks must be evaluated, and strategic steps must be taken to revise and change regulaions. The spirit of Not Business As Usual should also relect in the implementaion of important E c on o m ic Tr an sfo rm a i o n