PROMOTING SUSTAINABLE ECONOMIC GROWTH, ENVIRONMENTAL AND SOCIAL HARMONY IN ASIA

Transcription

1 REPUBLIK PROMOTING SUSTAINABLE ECONOMIC GROWTH, ENVIRONMENTAL AND SOCIAL HARMONY IN ASIA Minister of National Development Planning / Head of National Development Planning Agency Presented on ACI Conference Singapore, 23 November 2017

2 2 REPUBLIK Indonesia s Economy Indonesia is a big market, which is prospective for investment 16 th Largest economy in the world Top 5 Emerging markets with the best middle class potential 4 th Most populous country in the world ±5% Private consumption grows steadily Indonesia s economic growth is relatively high and stable with improving GDP per capita Infrastructure Development is progressive 4 Indonesian Economic Growth (%) * Source: BPS GDP per capita (USD) 3374 *Govt Target on the Revised State Budget Indonesia is projected to be the th largest Economy in the World in 2050 (World in 2050, PWC)

3 REPUBLIK Indonesia s Economy Is Changing Rapidly 3

4 4 REPUBLIK Economic Growth Continues Its Positive Momentum Economic growth continued its upward trend. supported by high investment and export growth. as well as improved government consumption However. the growth in household consumption is slightly slowing down Imports grew strong. indicating an increase in domestic economic activity (Percent. YoY) Component I II III IV I II III Household Consumption I II III IV I II III IV I II III NPISH Consumption Government Consumption Gross Fixed Capital Formation Exports Imports GDP Source: BPS

5 REPUBLIK The Rise of Middle Income Class... Health and education consumption grew strongly by 5.38 percent. The relatively stable growth of health and education consumption which was higher than the growth of total household consumption is a result of the rise of the middle income class in Indonesia... (Percent, YoY) COMPONENT I II III IV I II III Household Consumption Expenditure a. Food and Beverages (non restaurant) b. Clothing and Footwear c. Housing, water, electricity, gas etc d. Health and Education e. Transportation and Communication f. Restaurant and Hotel g. Others Indicates changes in consumption patterns of consumers towards leisure goods. Restaurant and hotel and transportation and communications consumption growth grew strongly by 5.86 and 5.52 percent respectively, higher than overall household consumption growth... 5

6 6 REPUBLIK The Rise of Digital Economy Q Structure of GDP (%) Economic Growth (%) Manufacturing Agriculture Trade Construction Mining Transportation and Storage Financial Services & Insurance Information & Communication Government Adm. Education Services Accommodation & Food Services Real Estate Other Services Business Activities Electricity and Gas Health and Social Work Water Supply Information and communication grew more than 9 percent, continued its high growth of around 9 percent in the past 2 years. It indicates the increasing importance of the ICT sector. Transportation and storages also grew strongly, more than 8 percent. High growth in this sector is supported by the rise of e-commerce and transportation start-up, such as: Gojek, Grab, and Uber

7 REPUBLIK Economic Growth and Development Target 2018 ECONOMIC GROWTH: 5.4% INFLATION: Investment will be the main driver of Indonesian Economic growth IDR/USD: 13,300 13,500 Poverty Rate: 9,5 10,0% Unemployment Rate: 5,0 5,3% Gini Ratio: 0,38 HDI: 71,5 7 7

8 8 REPUBLIK Indonesia s Commitment to Achieve SDGs Economic opportunities with Achieving SDGs 2030 At least $12 trillion in economic opportunities and 380 million new jobs by Indonesia s Commitment to SDGs: Presidential Regulation Number 59 Year 2017 In support of the Sustainable Development Goals: National SDGs target for Indonesia s Development National and Local Development Action Plan for achieving SDGs 2030 Better Business Better World Report, January 2017

9 9 REPUBLIK Focusing on Infrastructure Development as A Way to Stimulate Economic Growth, Job Creation, and Equality NATIONAL DEVELOPMENT TARGET Creating jobs for reducing poverty Fulfillment of Basic Needs Basic needs infrastructure for improving people health and well-being Improving Economic Growth Infrastructure to Support Leading Sectors Infrastructure for connecting leading sector areas Inclusive growth for reducing inequality Urban Infrastructure Urban infrastructure development towards modern and smart cities 100% drinking water access 100% sanitation access Livable housing access Irrigation for agriculture security Industrial area connectivity Tourism area development Modern transport development Develop sustainable urban transport Development towards smart cities

10 REPUBLIK Focusing on Regional Development: New Growth Centers IP SEI MANGKE IP BITUNG SEZ MOROTAI IP MANDOR SEZ MBTK NSTR DANAU TOBA IP KETAPANG IP MOROWALI SEZ SORONG SEZ TJ. KELAYANG IP BINTUNI IP TANGGAMUS IP BATU LICIN IP BANTAENG NSTR BOROBUDUR NSTR LABUAN BAJO NSTR BALI NSTR MANDALIKA NSTR: National Strategic Tourism Region SEZ: Special Economic Zone IP: Industrial Park INTERNATIONAL HUB PORT HUB PORT MARINE HIGHWAY HUB ROUTE FEEDER PORT MARINE HIGHWAY FEEDER ROUTE RAILWAY DEVELOPMENT TOLL ROAD DEVELOPMENT 10

11 REPUBLIK Indonesia s Transition to Low Carbon Economy Land-based Agriculture Energy Transportation Industry Waste Presidential Regulation No. 61/2011, supported by 34 Provincial Governments ,47% 26% *progress achievement of GHG emission reduction Involve related ministries, local governments, and other institutions through coordination the implementation and reporting on activity to reduce the GHG emission 11

12 12 REPUBLIK Focusing on Social Welfare Improvement 3 MAIN STRATEGIES WELFARE IMPROVEMENT 1. Comprehensive Social Protection System 2. Basic Services Development Social Security Social Assistance Basic Infrastructure Public Services Improvement Social Health Insurance Social Employment Insurance KIP, KIS, KKS (CCT and food voucher) Social Assistances for Children, Elderly, Disability, & Indigenous group Improved Access and Quality of Basic Services for Poor and Vulnerable (40% lowest income households) Poverty Rate % Gini Ratio Target in % 3. Sustainable Livelihoods for the poor and vulnerable Livelihood development Infrastructure Support for Economic Development Productive Economic Group Community Empowerment Access to Credits and Micro Insurance Trainings Facilitation Target in

13 REPUBLIK Focusing on Reducing Inequality EFFECTIVE FISCAL POLICY INTERVENTION TO REDUCE SPATIAL INEQUALITY PRODUCTIVE JOB OPPORTUNITY POLICIES Expand Social Protection System that complemented by affirmative policies and programs to have comprehensive policies for the poor and vulnerable. Improve human resources development, access to productive economy, and capital access. Expand the coverage of Social Security to include informal sector. Expand tax revenue and improve tax administration. Increase fiscal transfer to improve regional development, particularly in remote, islands and border regions. Improve national logistic system to support interregions flow and reduce price differences Expand labor intensive invetment Improve competency and skill labor Improve investment climate and job opportunity Reduce market distortion Strengthen market institution and public employment scheme to facilitate unemployment. 13

14 THANK YOU 14