Friday, June 25, 2010

Where Will We Go?


As a nation we do not know where we will go in this turbulent world. I see nothing of clearly, loudly communicated plan from our leader, SBY. Until now I have never been impressed by anything what he had done for his 2-term mandate in terms of what this nation want to achieve.

SBY's pro growth, pro poor, pro job is too abstract for me. It is far cry from we really need now: simple realistic plan, but considerably implemented. Lack of vision, make us mire in the crazy idea of pork barrel. Since the term of presidency is only 5 years, the plan needs quick and smart actions to ensure people seeing the result.

Among the 3 pros, pro job should be the first thing to be handled. The growth we need is the quality growth that leads the jobs absorption. The poverty will be eradicated if the government can provide jobs directly or indirectly with the adequate salary to live on. We don't need the statistics telling us that the employment is full or the unemployment less than 10%, we absolutely need is how to make a rapid shift from the low added value of farming-oriented jobs to industrial jobs and then the next to higher added value of service industry. That is the path should be got through. And there is no other path to step based on Indonesia's situation.

The government should formulate the program to be industry-based country. And the rational way is to invite the foreigner through Foreign Direct Investment (FDI). To lure the foreign fund of investment we should give them best infrastructure, red-tape-free administration, tax holiday, etc. And we should have known that there is a lot of choice for investors to put in their money. And what we have done with FDI is very poor. Data showed that Indonesia lagged behind in terms of FDI absorption. The ratio of Indonesia's FDI to GNP is 5%, compared to China 11%, Vietnam 55%. We have a lot of space, a lot of variety of energy, a lot of cheap workforce, but we see only few of economic zones. We have abandoned this competitive advantage. It indicates that the government has no real agenda to make pro job happen.

In a nutshell, our prosperity begins with shifting of farming jobs to industrial jobs – Pak Harto had ever had and had ever carried out this vision. The SBY administration should begin the massive program of industry-led development. Only the government with bold action and do something meaningful remains memorable. Hopefully SBY listen to my advice :-) or the next president will.

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