Policy Changes Hamper Efforts to Become Advanced Country

Indonesia needs a sustainable development program to achieve its target of becoming a developed country by 2045. Improving the quality of human resources (HR) and mastery of technology is also quite important.

KOMPAS/LASTI KURNIA

Limited panel discussion Kompas 3-Series Towards Indonesia 2045 at Menara Kompas Building, Jakarta, Thursday (03/12/2020). The discussion was guided by Kompas Daily Editor in Chief Ninuk Mardiana Pambudy, with speakers Muhammad Chatib Basri, Rudiantara, Emil Salim, Arif Satria, and Hendri Saparini.

JAKARTA, KOMPAS - Indonesia needs a sustainable development program to achieve its target of becoming a developed country by 2045. A system and national agreements need to be built so that the program can still be realized despite changes in the president, ministers, or regional heads within the next 25 years.

"If government policies and programs are changed every five years, it will certainly be difficult to achieve Indonesia\'s vision of becoming an advanced nation by 2045," said Core Indonesia\'s senior economist, Hendri Saparini, in a panel discussion entitled "Creating Sustainable Growth Toward Golden Indonesia 2045 " held daily Kompas in Jakarta on Thursday.

Also read : Writing Indonesia in 2045

To become a developed country by 2045, Indonesia must meet a number of economic indicators. Citing a review of the National Development Planning Agency, Indonesia\'s per capita gross domestic product (GDP) is targeted to reach US$23,199 in 2045 as compared to $4,174.9 in 2019.

According to Hendri, to prevent policy from changing every time there is a replacement in the president or ministers, there should be a national agreement to establish a 25-year national development program toward 2045. Strong government institutions are the keys. In addition, Indonesia also needs leaders who have the capability and strong political will to realize a vision for long-term, not just within their terms of office Speakers at the discussion, among others, included a professor at the School of Economics and Business, University of Indonesia and the chairman of the Presidential Advisory Council during 2010-2014, Emil Salim, the finance minister from 2013-2014, M. Chatib Basri, the energy and mineral resources minister during 2016-2019, Ignasius Jonan, the communications and information minister from 2014-2019, Rudiantara and the rector of IPB University, Arif Satria.

All depends on the president, ministers, governors, or regents in charge.

Regarding the vision, according to Arif, there must be a transformation from leader approach to the system approach in a government institution. He cited in Japan, the prime minister or ministerial-level officials are often replaced in a relatively short period of time, but no major shocks arose from the change.

"That\'s because their system is already established, while in Indonesia the leader approach is still used. All depends on the president, ministers, governors, or regents in charge, "said Arif.

Also read : Designing a Strategy toward “Golden Indonesia 2045”

KOMPAS/WAWAN H PRABOWO

President Joko Widodo (sixth left) and Vice President Ma\'ruf Amin (sixth right), along with members of the Indonesia Onward Cabinet, wave during a group photograph on 23 Oct. 2019 on the front steps of Merdeka Palace in Central Jakarta. Earlier in the day, the President announced the Cabinet line-up, while advising his new ministers against committing corruption and urging them to create a solid system that did not allow corruption.

On the other hand, the government system in Indonesia has not been completely free of complex bureaucracy and long-winded licensing. A weak coordination between central and regional institutions is still an obstacle in realizing an ideal government system.

Efforts to carry out a bureaucratic reform are not easy because there are many variables that must be involved. "For example, the BKPM (Investment Coordinating Board) wants to realize investment reform, but the decision is made by other ministries and institutions. A permit for an investment of Rp 100 billion, for example, can be completed in three hours at BKPM. Can they investor immediately set up a factory? Not necessarily because the decision is in regions, "said Chatib.

The mastery of technology

Improving the quality of human resources (HR) and mastery of technology is also quite important. Unfortunately, according to Emil, the quality of Indonesian human resources is still far behind. Of the 70 countries studied by the Program for International Student Assessment in 2015 and 2018, Indonesia was ranked 62nd or classified as low in literacy.

"How do you increase productivity? The method is through education. Young Indonesians can be sent abroad to learn science and technology from developed countries, "Emil said.

The utilization of digital technology can be one way to increase productivity. "The government\'s role is how the process (utilization of digital technology) can be accelerated. Licensing issues, for example, must be accelerated with technology, "said Rudiantara.

In the oil and gas industry sector, Jonan exemplifies the role of technology in the oil and gas business. Before being taken over by ExxonMobil (US oil and gas company), for decades Banyu Urip Field in Cepu Block, Central Java, no large oil reserves were found. However, since being operated by ExxonMobil, the Cepu Block has become the largest crude oil producer in Indonesia with a production of 225,000 barrels per day at present.