The low level of industry that orientates towards the increase of added value is a homework for many groups. This affects the low value and capacity of Indonesian products. Meanwhile, the human resource quality poses another challenge for Indonesia. Currently, at least 55% of Indonesian manpower only have basic education and only 8.8% with a diploma/degree. This human resource capacity needs to be improved.
Thus was said by Expert Staff to the Co-ordinating Minister for Economic Affairs and Business Competition, Dr. Supriyadi, M.Eng., in Auditorium of MM UGM, Saturday (23/7), during the Management Conference 2011 event with the title Implementing Business Ethics towards Sustainable Development. Reading out the speech of the Co-ordinating Minister, Supriyadi said that to achieve high growth, equity and sustainable economic development needs the acceleration of economic transformation. “This can be done, that economy is built on common collaboration between the central government, regional government, state owned enterprises, regional enterprises and private partners, all to be incorporated,” he said.
To realise such economic transformation, infrastructure development is very important and for ASEAN this is already agreed in the Masterplan on ASEAN Connectivity on 17 December 2010. The President has even launched the Masterplan for Acceleration and Extension of Indonesian Economic Development (MP3EI). "There are three pillars in the MP3EI: economic potential development, national connectivity enhancement and enhancement of human resource capability and national science and technology, and human resouce and science and technology development is one very important pillar,” Supriyadi added.
In terms of global economic growth and its impact on national economic performance, Supriyadi said that global economy in 2011 is still growing. This will be dominated by developing countries at a rate of 6.3%. Some of those countries are in Asia with China is predicted to be still leading, followed by India and ASEAN countries.
In the event hosted together by MM UGM and Association of Program Magister Manajemen Indonesia (APMMI), Supriyadi said that Asian region is getting more important in the global trade composition, marked by the increase of Asian share to the total world trade from 27% in 2005 to 31% in 2009, Different from North America that is experiencing decrease from 18% to 15% and European Union from 39% to 38%. For the Middle East, it increased from 4% to 5%. "Indonesia is part of Asia which is the most dynamic global area and is experiencing significant increase,” he explained.
Some measures have been done by the government in order to support the acceleration, including revising laws and Presidential Regulations to support infrastructure development. For example, Presidential Regulations No 13/2010 on private participation in infrastructure development to give description in unsolicited project, procurement procedures and government’s role in land allocation. Besides, there is the revision to Presidential Regulations that has produced Law No 4/2009 on Minerals and Coal. “This is such legal products that can obtain added value from mining and coal business,” he said.