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

Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 22 To support the acceleraion and expansion of economic development in Indonesia, the Government has set a number of major programs in collaboraion with key stakeholders including government ministries and the private sector in the development of MP3EI. Based on stakeholders’ agreement the focus of development was classiied into 8 main programs, i.e.: agriculture, mining, energy, industrial, marine, tourism, telecommunicaion, and the development of strategic areas. The eight main programs consist of 22 main economic aciviies. Figure 1.8: 22 Main Economic Aciviies Transportaion Equipment ICT Shipping Texiles Food- Beverages defence Equipment Palm Oil Rubber Cocoa animal Husbandry Timber Oil and Gas Coal Nickel Bauxite Fishery Tourism Food agriculture Jabodetabek Area Sunda Straits Strategic Area Copper 22 Main Economic aciviies Steel 8 22 8 22 Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 23

F. MP3EI - an Integral Part of Naional development Planning

MP3EI is a working document and as such it will be updated and reined progressively. It contains the main direcion of development for speciic economic aciviies, including infrastructure needs and recommendaions for changerevision of regulaions as well to iniiate the need of new regulaions to push for acceleraion and expansion of investment. MP3EI is an integral part of the naional development planning system. MP3EI is not meant for subsituing the exising Long Term Development Plan 2005 – 2025 Law No. 17 Year 2007 and the Medium-Term Development Plan 2004 – 2009 Presidenial Decree No. 7 Year 2009. MP3EI is formulated in consideraion of the Naional Acion Plan for Greenhouse Gas Rencana Aksi Nasional Gas Rumah Kaca – RAN GRK as a naional commitment which recognizes the global climate change. Figure 1.9: MP3EI Posiion in the Government’s Development Plan Development adaptaion, integraion, and acceleraion: FOCUS and CONCRETE 1 Masterplan of Acceleraion and Expansion of Indonesia Economic Development RKPRAPBN 1 RAN-GRK REDD RTRWN RPJPN 2005 – 2025 RPJMN 2010 – 2014 Financial and Planning System Law No. 25 Year 2004 - Law No. 17 Year 2003 • Global Condiion Economic Crisis in 2008, BRICS, etc. • Internaional Commitment G20, APEC, FTA, ASEAN, Climate Change • Domesic Socio-Economic Development Acion PlanningProject Private Investment and PPP To Accelerate Naional Economic Transformaion Dinamic Change Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 24 Figure 1.10: Framework Approach Masterplan P3EI “To Create a Self- Suicient, advanced, Just, and Prosperous Indonesia” 1. Encourage a large scale investment realizaion in 22 main economic aciviies 2. Synchronizaion of naional acion plan to revitalize the real sector performance

3. The development of center of excellence in each economic corridor

ECONOMIC POTENTIaL dEVELOPMENT THROUGH ECONOMIC CORRIdORS STRENGTHENING THE NaTIONaL CONNECTIVITY STRENGTHENING NaTIONaL HUMaN RESOURCES CaPaBILITY aNd SCIENCE TECHNOLOGY BaSIC PRINCIPLES aNd SUCCESS PREREQUISITES FOR aCCELERaTION aNd EXPaNSION OF ECONOMIC dEVELOPMENT STRaTEGIC INITIaTIVES OF MP3EI MaIN STRaTEGY OF MP3EI BaSIC PRINCIPLES OF MP3EI INdONESIa VISION 2025

G. Framework design of MP3EI

Based on the various factors noted, the framework design of the Masterplan for Acceleraion and Expansion of Indonesia Economic Development MP3EI for 2011 to 2025 is formulated as in Figure 1.10. Each main strategy of MP3EI will be discussed in more detail in subsequent chapters of this Masterplan. Masterplan P3EI The Self-Suicient, advanced, Just, and Prosperous Indonesia 25