Indonesia Economic Growth Should Be Ameliorated


The index of Indonesia economic freedom should be escalated since the inferior index leads to the weakening of Indonesia economic growth and industry performance. The notion was declared by Drs. Iman Pambagyo, an expert staff at the Trade Ministry for global trade policy as well as the speaker of a national seminar of ‘Indonesia Trade Diplomacy in Africa’ on Saturday (27/2) at meeting hall of A.R. Fachruddin A, floor 5, Universitas Muhammadiyah Yogyakarta (UMY).

He mentioned that there are four factors diluting Indonesia economic growth, namely investment in a mining sector, governmental budget, export, and consumption. “Indonesia accentuates the mining sector, but it cannot foster the industry growth, indeed. For one reason, the sector cannot enhance the economic growth, and relying on the sector will attenuate Indonesia. Besides, 70% of the exports of Indonesia are raw materials which the cost is alleviating,” he told.

Even though Indonesia is predicted to be the greatest production country in the world in 2030, it will be hard if the issue of credit and corruption is running riot in Indonesia. It is also forecast that the population of Indonesia will increase 74% in the next 20 years. “The condition must be complicated if Indonesia does not evolve the trade. The sector is also hard to develop if the finance is not supported,” he inserted. Confronting Global Value Chain, Iman advised students and entrepreneurs to enhance their abilities to encounter the competitive world.

Dr. Arifi Saiman, M.A. from Center for the Study and Development of Asia-Pacific and Africa, Ministry of Foreign Affairs, stated that Africa can be a trade partner of Indonesia since the continent has gold in the economic sector. However, even though Indonesia has cooperated with Africa, but the economy is still low. “Africa regions which can be good trade partners of Indonesia is Nigeria, South Africa, Egypt, Angola, Ivory Coast, Algeria, Djibouti, Benin, Ghana, Tanzania, Kenya, and Ethiopia. The cooperation shows Indonesia income is greater accounted 11.7% or USD 11.7 billion than in 2013 accounted USD 9.88 billion,” Arifi stated.

Arifi argued that Africa regions are controversial. Africa was colonized by four countries, namely the United Kingdom, France, Portugal, and Spain, and the colonialism caused the different economic growth. “Noticing the colonialism areas, or so-called intelligent market, is necessary to recognize market potentials,” he said.

Additionally, Rector of UMY Prof. Dr. Bambang Cipto, M.A. conveyed that Indonesia cooperated with 50 of 54 countries in Africa that 5% of them possess high economic growth. “Nevertheless, public has not realized the potentials of the continent, particularly the economic potentials, because public still considers that potential international trade is the United States and People’s Republic of China. In fact, several Africa regions are prospective for international trade,” he informed.

Indonesia international trade issues in Africa can become good topics for students’ research. “May this seminar inspire the students,” he expected.

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