Anticipating Growth

KOMPAS/PRIYOMBODO

Jakarta\'s city landscape with skyscrapers in view from Sudirman\'s integrated business center (SCBD), Jakarta, Wednesday (11/4). The Asian Development Bank expects Indonesia\'s economy to grow by 5.3 percent this year and next year.

The World Bank has estimated that Indonesia’s economy will grow 5.3 percent this year, slightly lower than the government’s 5.4 percent growth target.

The global financial institution said last week that this year’s economic growth of emerging countries in East Asia and the Pacific would be strong at an average 6.3 percent growth. This estimate is in line with the Asian Development Bank’s recently announced projection.

Nevertheless, at the same time the World Bank also urged countries to prepare for uncertainties in global finance and trade.

Indonesia’s economic growth will be driven by 5.1 percent growth in investment and 6 percent growth in household consumption. These figures are below the average growth rate of emerging countries.

That our estimated growth is lower than those of other countries in the region is a sign that we need to work together, hard and sincerely. The government, as the creator and executioner of the national development plans, must evaluate all development programs and sharpen their goals and effective implementation. Moreover, we are currently under the shadow of the state budget deficit, not to mention the interest on our national debt.

The government has issued 16 economic policy packages to boost investment and economic growth. However, the people have yet to feel the effects of these packages, as reflected in the below-target realization of economic growth.

Indonesia actually has huge economic potential, especially in terms of its comparative and competitive advantages.

Agriculture, for instance, may be inadequate production-wise to boost high growth. However, the agriculture yield will provide a large contribution to the economy after it has been processed into final products to the meet demands of increasingly segmented consumers. Developing inclusive agriculture and agribusiness will boost the regional economy, such as through creating jobs, increasing the people’s purchasing power and boosting regional revenues.

The fact is that obstacles to the effective use of our competitive and comparative advantages come not only from our local bureaucracies, but also from the central government through its complicated, unwritten regulations.

The World Bank reminds us that global uncertainty will continue to loom over our potential growth, so we must work and make sure to mitigate domestic obstacles.

We will soon hold the simultaneous elections in 171 regions. Next year, we will hold the legislative and presidential elections. The people expect that the democratic processes will not be an excuse for the government to reduce its workload in improving their welfare; neither do they expect democracy to be used to seek gains for personal or group interests. If we waste our potential for achieving progress, the price will be too high for the entire nation to bear.