VIVAnews – The World Bank reported that Indonesia along with Brazil, China, India, South Korea and Russia will be the countries which support the global economic growth. However, for Indonesia, there are some issues that the government and the people must pay attention to.
World Bank chief economist Mansoor Dailami stressed that there are three major assets that may boost Indonesia to grow rapidly. First is the factor of demography, as the people of productive age are many compared to other countries. Second, democracy stability. Third, the factor of abundant mineral resources with increasing commodity prices.
Mansoor went on that there are also three challenges for Indonesia to spur growth. First, education. “Education must be productive. Competitiveness must be high and Indonesian workers must be highly skilled to be able to compete in the future,” said Dailami in Jakarta today.
The second challenge is the allocation of subsidy budget. The allocation of subsidy budget must be reduced, but that of health and education must be increased continuously.
Third, capital inflow. “Indonesia must be careful because the appreciation of its currency is not too high,” said Mansoor.
As regards the issues of graft and democracy, he stressed that Indonesia is not the only one stricken by graft. Some other developing countries also have the same problem. However, in Indonesia, he said, “There has been improvement,” said Mansoor.
Bank Danamon chief economist Anton Gunawan said that economic sector must in fact be pushed so as to gain added value. For example, by processing raw material into goods with more added value.
“Manufacture sector must be the backbone. Currently manufacture sector only depends on some fields such as automotive and machinery. Other fields like food practically don’t grow much,” said Anton.
Wijayanto, Managing Director of Paramadina Public Policy Institute said that Indonesia be able to take advantage of free trade opportunity. “We must be able to produce the goods demanded by China, by seeing their consumption along with its rising economy,” he said.
Translated by Indah Lestari
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