Wawancara Presiden RI Dengan The Straits Times

TRANSKRIP
WAWANCARA THE STRAITS TIMES DENGAN PRESIDEN REPUBLIK INDONESIA
DI RUANG 1582, HOTEL AYODYA, BALI
19 JULI 2011




LI XUEYING, REPORTER THE STRAITS TIMES: So this question is you’re now midway through your second term as President. Can your share with us about the top three development policies for Indonesia in the mean time. For instance, I remember that during the lunch that day you spoke about growth, a strong, balanced growth, a growth with social justice and equity, which I thought was very, very interesting. Could you share more about, what other plans?

PRESIDEN RI: Yes, actually as you know that our goal is not only achieving growth, high growth, it means strong, balanced and sustainable growth, but also inclusive growth. We have adopted actually the so-called four-track strategy. Our economic development must be pro growth, pro job, pro poverty reduction and also pro environment. We have to achieve high and sustainable growth without destroying our environment. That’s our ideology, that’s our economic strategy. 

To achieve those goals, if you are asking me our top three development issue, I would say, in achieving growth, we have to enhance our investment, to increase our government spending, government expenditure, to maintain domestic consumptions, and also to ensure that we can promote our export. So from demand-side economy, we need to promote all those things. From production function of the economy, we know well that to achieve those goals, we need to improve the productivity, the technology, the entrepreneurship beside our natural resources, land and capital. And those important factors that we want to continously promote to achive higher growth. 

To create jobs, it means if we have high growth, then jobs will be created. But, of course we need to ensure that we can also promote small and medium business; micro, small and medium business across the country by, for example, expanding our micro credit to small businesses. That is also our approach, our track in ensuring that we could continuosly promote growth in this country. 

To reduce poverty, we use a double-track approach, once again, follow the economic mechanism. If we have growth, then jobs can be created. With jobs, people will have better income. With better income, there will be less poor. That’s the logic. But of course, we need to have a social safety net program, we have to allocate more resources to help the poor while empowering them to be more capable in finding job, in improving their own life. So, those the framework, the strategy, the concept of our economic development. So if we have to say three top issue, yes, I may say growth, jobs and poverty reductions. 

If we could go little bit down to earth, I would say also three important things. One, is improving our infrastructures across the country, including power, electricity. It is strongly needed for improving our investment. We need to, of course, continue our bureaucratic reforms, we need to have good governance and also effective and responsive bureaucracy, and of course we have to ensure that economic policies are correct, are sought, the policies in the central goverment as well as in the regional government. Remember that we apply especially regional autonomy and decentralization of our government. Those my answer for the top issues of our development.

LI XUEYING, REPORTER THE STRAITS TIMES: May I ask you a question to that. Can you tell me those are very concrete development plans that you have shared. Can you tell me what are the concerns and the challenges to this that you need to overcome to achieve that?

PRESIDEN RI: I have to stress one more time that to achieve higher growth across the country, we need larger or bigger investment. And with that, it means we need to improve our infrastructures. So, our main challenge is infrastructures, including electricity; could be road system, port, harbours and other physical infrastructures. Number two, we need to ensure that we are having better investment climate. It means the easiness of doing business in Indonesia, the equity legal framework, again responsive bureaucracy, all those things that I believe will attract more investors to come to Indonesia. 

Others, yes, we are working very hard to make our legal framework be in place; and with that, we’ll have better certainty in our legal situation and will further improve the investment climate in Indonesia. All those three in my views are very important to ensure that we could further promote our investment and business activities here in Indonesia.

LI XUEYING, REPORTER THE STRAITS TIMES: So you’re talking first of all about infrastructure, so for instance, if I am not wrong, at the moment said that Indonesia spent about 3.6% of GDP on infrastructure. Are there plans to spend more to improve the infrastructure?

PRESIDEN RI: Well, I am pleased to say that our economic growth keep increasing, our revenue is also increasing. So we could allocate more resources in our national budget to build more infrastructures. But to be frank, it will cost a lot of money and I should not allocate our budget to only infrastructure building. That’s why we developed a new framework in building infrastructures by having public-private partnerships. 

We tried to distinguish what kind of infrastructures to be built by the government, using our national money, national budget, and what kind of infrastructure that is commercially viable so we could attract investors both domestic as well as foreign in a nice partnership. So with that, we could accelerate and expand the building of infrastructures. And the trend is promising, the reality is good because there are a lot of commitments coming from our partners abroad, to be part of infrastructure building in Indonesia in the next fifteen years under our new masterplan. 

LI XUEYING, REPORTER THE STRAITS TIMES: I know that you work harder to get $465 billion for investment. How did, any update so far?

PRESIDEN RI: Well, that’s our figure, the commitment because we try to mobilize all resources we have from our national budget, that is continuosly increasing. We try also to increase the investment of state-owned enterprises. That is good because our state-owned enterprises plan to invest more than 100 billion. We also of course invite our private sectors to be part of this big endeavor, and they are all committed already to also invest more or less equal number that the state-owned enterprises will invest, and of course partners abroad, among others from China, India, Japan, South Korea and other partners. So in my calculation, it will be reached that kind of number. And of course when we are able to grow continuosly our economy across the country, there’ll be many investors to come to Indonesia because they know that we have great opportunities, that they believe that the business is moving.

LI XUEYING, REPORTER THE STRAITS TIMES: I would like to just ask, follow up to that, Pak Presiden. I think Pak Gita Wirjawan mentioned that, yes this PPP is very important as well to drive, you know, your vision forward for 2025. I think so far, I think, what’s needed at least 20 of such PPP project. So far, you’ve got two. Do you think that, is there like a timeline when others should come in? Is there something you’ve done to accelerate this?

PRESIDEN RI: Yes, there are many factors to consider, I should now consider. There are many factors to improve in ensuring that we have timely implementation of PPP. Number one, is our policy, including fiscal policy, and also the land procurement and other things that currently hinder the quick implementation of PPP. So I will not set the fixed timeline that I will ensure that we could accelerate the implementation of the PPP. 

And with the new masterplan because the ownerships of the masterplan is wider now, it will include the private sectors, the state-owned enterprises, the central government, the local government. So, a factor that hinders the implementation of PPP, in my view, can be resolved and say in the next 5 years or so, we’ll be able to accelerate the process of our infrastructure building, including the PPP framework. 

LI XUEYING, REPORTER THE STRAITS TIMES: so, you’re confident of getting 20 by...?

PRESIDEN RI: I am confident because the trend is moving well. And with a bigger ownership, I believe that we will be able to overcome several bottleneckings that still occur in this country, especially in the region. 

LI XUEYING, REPORTER THE STRAITS TIMES: so for instance, you spoke about the procurement of land and the obstacles to build this economy still, if I am not wrong, with the national land agency, are other plans to push that through?

PRESIDEN RI: Yes, we do have our national land agency but we need to have new law, undang-undang, act, and the trunk of the law is now discussed at the parliament and both the parliament and the government agree to speed up the process of the adoptions of our new law, the land procurement. And with this, we will ensure that our national land agency more effective in doing its business. 

We will ensure that regional government, including regents and mayors, are more capable in handling this issues; and with the new laws, and of course will be further arranged by presidential decree and other government regulations will make all processes more effective. 

LI XUEYING, REPORTER THE STRAITS TIMES: Is there a timeline for this new law?

PRESIDEN RI: We expect can be adopted this year. We expect. You know politics is politics; as a young democracy, sometimes there will be a long process back and forth between the government and the parliament. It is o.k. but I believe someday when we finally agree on adopting laws, that ownership will be stronger.

LI XUEYING, REPORTER THE STRAITS TIMES: Pak Presiden, of course it’s like, we’re both saying that by August hopefully or by November this law will come in; and my point is, also my interest is in finding out, after this bill is passed, what is your, what is the situation that will happen after this and disconnect between central government and regional sometimes. So, how do you ensure that this process after this bill or undang-undang passed can be implemented well?

PRESIDEN RI: Yes, you know that the revolution in Indonesia, all over the world, is a process. Remember, the U.K. took more than fifty years to reach the deal but the process was working well, and remember that only around ten years ago we adopted this new decentralization government, regional economy. Sometimes there are problems in ensuring that regional regulation is really in line with central government’s regulations, and we have revised many things. But, under this law, we will, in my belief, be able to overcome the bottlenecking and also to avoid disconnect between the central and regional government regulations and also the central and regional government’s focus and priority. 

This is a part of our reform and reform cannot be done overnight, but I am optimistic; remember, if our reform is not working, Indonesia cannot grow its economy like this, better fundamentals, with better situation eventhough we were hit recently by the global economic crisis. It means we are moving but I want we could move faster by continuing our reform. So, enough is not good enough. So, we have to do more actually. 

LI XUEYING, REPORTER THE STRAITS TIMES: and how would you strive to convince and persuade and push the other regional governments, which may have their own agendas and interests, to follow with the central government’s agenda?

PRESIDEN RI: That’s the Indonesian politics, remember, because all governors, all mayors, all regents are directly elected by the people. It is really different with what we had in the past when the government system was more centralistic; but this is our choice, this is the reality. So actually, we do have measures actually to ensure that the regional government’s policy, regulations really follow our policies and regulations. 

We could revise, we revised many regional government regulations and they have changed already to be in line with our policies and regulations. So this is our challenge, this is the real issue but I believe, along with the majority of our democracy, all those problems will be resolved over time. 

I should not give empty promise by saying, “Well, everything is O.K. Well, it will be solved soon.” I will not say that. But the trend is correct and we have progressed along the way.

LI XUEYING, REPORTER THE STRAITS TIMES: Pak Presiden, this thing that you’re talking about relates to this other question that I want to ask about the economic development, the corridors that you’ve planned in your masterplan and you know about what needs to be done or needed in terms of policy making and all that. My question is, just trying to get spesific from you if you can about how you have, whether it’s you or your other ministers, have come down to the ground, to the regents and tell them exactly what to do, how your message should be implemented, the exact plans, have you had that?

PRESIDEN RI: We have a forum, we have an annual forum to ensure that in developing our national plan and program, everybody is on board, including all governors, regents and mayors. Number two, to supervise, to manage and to control the implementation of development, we have regular meeting that I chair myself to ensure that all policies must be well implemented. Number three, in developing this new masterplan for almost a year, we brought on board all stakeholders, the governors, the regional members of the parliament, of course the private sector, state-owned enterprises, the academicians and other stakeholders, just to ensure that we have a good plan that we have developed together and we should implement together to be able to achieve our goals. 

Actually, in terms of system of management, we have done all those things, but remember again Indonesia is in the process of transition, of reform, of democratization and we have introduced many systems, such as regional autonomy, other way politics than war, you know well that for a young democracy, there are lots of freedom, but sometimes we are lacking rule of law. That’s why our task is to ensure that both freedom and rule of law work together, go hand in hand, and that will make our development more effective. So back to your questions, we have done all these things to ensure that government officers will do your own obligations and tax again in line with national policies and plan.

LI XUEYING, REPORTER THE STRAITS TIMES: And if we could relate these factors to Singapore, how do you think Singapore can play a role in this economic masterplan and also how would you to really assure Singapore investors quite interested in the immense potentials of Indonesia but are worried or are concerned about the problems, like lack of uncertainty, lack of infrastructures, corruption? 

PRESIDEN RI: Well, firstly if I could mention the relation between Singapore and Indonesia, it is good, it is progressing, it is solid. Our economic relations are strong; Singapore is a strong trading partner of Indonesia; remember, our trade volume reaches more than 20 billions. On other field, we are working well in the field of security, in securing Malaka Strait. It’s a good example. We are working together in disaster relief operations. We have a good progress in solving our border dispute. So actually, our relation’s progressing well. 

I had offered to my good friend, Prime Minister Lee Hsien Loong, when I met him recently in Jakarta, World Economic Forum; we had our new masterplan, set corridors, economic zone, industrial clusters; and I asked PM Lee to encourage the private sectors in Singapore to learn and to find opportunities in our economic development for the next fifteen years. For example, we could work together better in developing Batam, Bintan, Karimun and Singapore as a one wider economic zone for the benefit for both Singapore and Indonesia. We could increase our trade relation, investment, our services, tourism and others. So actually, I have offered to our partners in Singapore to be part of this development. 

Indonesia is of course having larger and bigger domestic market and keeps growing, so why don’t we integrate more our economy. Of course, there are several isuess. And I ensure that we are fixing along the way. Some have been resolved already. Of course, there are one or two isuess that we need to cooperate well. So actually if you go to India, to China, to other countries, you may find some challenges, some problems, some issues as Indonesia does have. So, the most important is the spirit of working together; we both under new spirit of ASEAN, building economic community and other communities. So actually, I still hope and welcome Singapore to be part of our economic development. 

LI XUEYING, REPORTER THE STRAITS TIMES: Pak Presiden, I like that bit about the spirit of working together; can you share with us, what is it from Singapore that, in terms of economic interest, that you hope would come, the kind of sectors that you want to continue?

PRESIDEN RI: Let’s continue developing our zone of cooperations, Singapore, Batam, Bintan, Karimun, to be place for tourism, for services and other things. I know that Singapore is now becoming a global trade center, finance center, service center but Singapore needs more room and Singapore has its close neighbours, Batam, Bintan, Karimun, to be partners in developing the region. 

Number two, of course we need to improve our trade relations; it’s good now. There are homes to do more and probably someday we will have a wider cooperation in the field of tourism and services. Singapore of course has excellent area of service industry. So, we could connect the potential that Singapore does have with the opportunities here in Indonesia because the region is growing, tourism, and also transportation through air in many cities in Indonesia. Of course we need to sit down and develop correct policy on that.

LI XUEYING, REPORTER THE STRAITS TIMES: one last question on ASEAN; Indonesia is the chairman of ASEAN this year; and you have said that you want to focus on cover larger role of ASEAN on the global stage. Can you give us an update on how this is going so far and how else can Indonesia work with ASEAN as a relevant voice?

PRESIDEN RI: I am really optimistic about our future, the future of ASEAN; remember, that we are able actually to consolidate, to develop ourselves to be one single community. There is progress on that. Now, ASEAN is becoming more people-centered; it’s good, good one; and in playing roles in the region. I am proud to say that ASEAN remains in the driving seat; the centrality of ASEAN is important and we could play that kind of roles; the regional architecture keeps developing from ASEAN, ASEAN+1, ASEAN+3, ASEAN+6 and now becoming East Asia Forum and ASEAN remains at the driving seat; we able to maintain our centrality in developing this regional architecture. So, my thesis is that we have to ensure to ourselves that we are able to integrate our countries for better situation, better condition economically, politically, intersecurity and other fields of life. And we have moved towards that direction. So in this first arena, I am optimistic that we are able to manifest, to implement the ASEAN community, not as structured as European Union but we are becoming rules-based, more structured regional association. 

Number two, ASEAN is also able to play wider roles in the region. Remember, East Asia Summit is now welcoming the participation of Russia and the U.S.; here in Bali next November, we will host the first East Asia Summit that both President Medvedev and President Obama insya Allah will come. It means that we’re able to integrate ourselves to wider community of nations. So, the track is right, the progress is real; of course, we do have challenges. So, we need to make ourselves stronger, more integrated, having policy coordination and with that we could integrate ourselves in the wider world communities.

LI XUEYING, REPORTER THE STRAITS TIMES: Is there any concern that with regards with current dispute in South China Sea that is not resolved, it might affect the credibility of ASEAN in the investors’ eyes?

PRESIDEN RI: My view is this. South China Sea is becoming more vulnerable in terms if the dispute cannot be resolved peacefully through diplomatic means politically. It will impact negatively, to stability of border and security in the region. And there are many players, we know well. So what we need to do is, we need to continue our dialogues, diplomatic relations and common endeavour with all parties involved to solve the current dispute peacefully. 

I will mention spesifically that we need to have code of conduct as a confidence building measures that everybody will be committed to. And the progress is good because ASEAN, China and other partners are responding positively to this idea. And I hope this current ministerial meeting of ASEAN and its dialogue partners can also path the way for speeding up the implementation of the adoption of this code of conduct over the South China Sea. So those things that ASEAN can do, those things that ASEAN can ask other players to ensure that we’re able to maintain peace, stability and order in the region, including the security over South China Sea.

LI XUEYING, REPORTER THE STRAITS TIMES: I was just gonna ask you, what do you hope would be the outcome like, what do you hope would be outcome of this meeting, what do you hope for?

PRESIDEN RI: This current meeting? Well, I do hope that all ministers can agree that we need to continue our positive appoarch in overcoming security problems in the region, as to be followed by the next summit and other summit. 

O.K.?

LI XUEYING, REPORTER THE STRAITS TIMES: Thank you so much.

PRESIDEN RI: You’re welcome. Good luck.

* * * * *

Biro Pers, Media dan Informasi
Sekretariat Presiden

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