JAKARTA (TheInsiderStories) – The government has set the main theme for 2019 Work Plan (RKP 2019) on ‘equitable development’ and ‘quality growth’, switching from infrastructure development set for this year, the National Development Planning Minister Bambang Brodjonegoro revealed.
In 2018, the government focused its work plan on ‘stimulating investment and infrastructure to achieve economic growth and equitable development’.
Bambang Brodjonegoro, who is also the Head of National Development Planning (Bappenas), said that the equitable development does not only target the income groups within the society but also between regions.
The 2019 work plan contains five national programs and 24 priority programs. The five programs are comprising of (1) human development, (2) disparity between regions, (3) value added, (4) energy, food, and water security as well as (50 national security stability.
President Joko Widodo has led a cabinet meeting early this week to discuss the 2019 Work Plan. The President stressed that the investment and exports will continue to become the driver of the country’s economic growth.
Human development refers to meeting the basic needs of the people, eradication of poverty as well as addressing the malnutrition issue.
On the issue of equitable development, the government will focus on improving the connectivity within the nation. This will be done by reducing logistics costs, including through optimizing the ‘sea toll’ program.
The value-added issue refers to creating value added to various sectors in the economy, including agriculture, manufacturing, and services. The main goal of this is to boost the manufacturing growth and ultimately help boost the country’s economic growth to above 5 per cent.
The human capital development also covers the promotion of vocational training, work standard and competence of the country’s workers, therefore improving the competitiveness of the country’s products.
The fourth focus is on ensuring the energy, food and water security, including developing the new and renewable energy. The fifth issue, national security stability, relates to the government’s efforts to maintain national security as the country will hold Presidential and Parliament Election next year.
This and next year will be an important period for the Joko Widodo government. The delivery of his programs could affect his intention to run for the second term in the 2019 Presidential Election.
In 2017, Indonesia posted gross domestic product (GDP) of 5.07 per cent, far lower from the government’s target 5.2 per cent in the State Budget for 2017. The growth was slightly higher than in the previous year of 5.02 per cent.
Even though, the 2017 growth was the highest growth recorded by the country since 2014, where the country posted growth of 5.02 per cent. In the following year, the country’s GDP growth reached only 4.79 per cent, and then bounce back to 5.02 per cent in 2016.
President Joko Widodo said earlier that the country’s economy should further improve to 5.3-5.4 per cent in 2018, therefore he called on business players to seize promising business opportunities.
The President sees potential factors that could lift Indonesia’s economy this year, including anticipated higher spending in regional areas, triggered by regional elections, as well as better-than-expected results in certain sectors, including tourism, lifestyle and information technology.
Bank Indonesia, on the other hand, predicts that economic growth in 2018 will be in the range of 5.1-5.5 per cent.