Indonesia’s Too-Slowly-Implemented Economic Corridors

I admit that President SBY has tried hard to make good for this country. The long time-discussed economic corridors development shows his effort. However, as usual, the initiative is largely implemented on the table rather than on ground. To me, economic corridor story is the ensuing laughingstock of SBY’s government, next to law enforcement and religious tolerance.

There are 5 (five) reasons that economic corridors are likely doomed to failure.

First, it’s completely too late for the government to execute the program. The deliberation of economic corridor has begun since, at least, the onset of SBY’s second term. So why do it start the next April 2011? Certainly, time is running out bearing in mind SBY’s administration expired in 2014.

Economic corridor is not a novel way to boost economy. Ample best practices from China or Malaysia can be learned. All government of developing countries should automatically have thought about it since the first day of taking the office. Surprisingly, now Coordinating Minister of Economic, Hatta Radjasa, vehemently tells us about the benefit of economic corridors.

Second, the government is wasting time to marshal long-term plan on economic corridor until 2025. This work will be a boondoggle since the next president will think about development differently; reminiscent of Habibie’s abandoned Integrated Economic Zone (KAPET).

The most important thing for the government right now is to deliver the development now at least until 2014, and not in 2025. It’s none of its business.

Third, the government is not serious. Infrastructure development is indispensable to Economic Corridors. However, the good intention belies Indonesia’s Infrastructure expenditure which is the lowest among the developing country, reaching only 2% of GDP, while China 10%, Vietnam 8%. The expert says infrastructure development must be earmarked at least 5%.

Fourth, there are too many corridors for the limited budget. It’s planned 6 (six) economic corridors all across archipelago. The government encourages private sectors to finance the corridors through Public-Private Partnership (PPP) scheme. Up to now this scheme is hardly undertaken. The now-Infrastructure Reform Sector Development Project (IRSDP) which mostly promoted the scheme moves at a snail’s pace.

Fifth, the initiatives might be ill-planned. During SBY’s visit to Surabaya Institute of Technology (ITS) in December 2010, the students held demonstration asking for Madura Island as special economic zone. The president okayed this demand. I am flabbergasted. How can the government determine the economic zone based on students’ directive?

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I always respect Pak Harto due chiefly to his development result. Apart from his infringement of human rights as well as his family inappropriate wealth, he had left us legacy: first toll road, passenger vessels serving nationwide, ports, dams, strategic industries including first local designed plane, first-ever self-sufficient rice production, etc. He deserves as Indonesia’s development father.

My two cents: Pak SBY, You will have 10 years stint. Please, leave us impressive legacy which is, as yet, nearly none. We need something that can be remembered and referred as your work, your remarkable contibution to this country. Economic corridor could be the chosen one.

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