(Insider Stories) - The value of projects realized under the Masterplan
for the Acceleration and Expansion of Indonesian Economic Development
(MP3EI) has reached Rp 737.9 trillion (US$66.78 billion). Indonesia
President Susilo Bambang Yudhoyono decided MP3EI in Cipanas Palace,
Bogor in 2011 and has produced concrete results.

Yudhoyono further said that if programs that had been agreed and
planned were jointly implemented by all parties along with assigned
responsibilities, remarkable results would be obtained.

Based on data from the Coordinating Ministry for Economic Affairs, the
total project MP3EI which has been groundbreaking until July 2013 as
many as 240 projects.
From all of those projects, 94 projects comes from the real sector
with an investment of Rp364, 4 trillion. Meanwhile, total investment
in the real sector and infrastructure, outside the human resources
Science and Technology,  is Rp647, 4 trillion, which consists of six
corridors.

The MP3EI is an ambitious plan by the Indonesian government to
accelerate the realization of becoming a developed country of which
the fruits and prosperity will be enjoyed equally among the people.
By utilizing the MP3EI, Indonesia aims to earn its place as one of the
world’s developed countries by 2025 with expected per capita income of
US$14,250-$15,500 and total gross domestic product of $4.0-$4.5
trillion.

To achieve these objectives, real economic growth of 6.4 to 7.5
percent is expected for the period of 2011-2014. This economic growth
is expected to coincide with a decrease in the rate of inflation from
6.5 percent in 2011-2014 to 3.0 percent in 2025. The combined growth
and inflation rates reflect the characteristics of a developed
country.

The vision for 2025 will be achieved by focusing on three main goals:

1. Increase value-adding and expanding the value chain for
industrial production processes, and increase the efficiency of the
distribution network. In addition, to increase the capability of the
industry to access and utilize both natural and human resources. These
increases can be attained by the creation of economic activities
within regions as well as among regional centers of economic growth.

2. Encourage efficiency in production and improve marketing efforts to
further integrate domestic markets in order to push for
competitiveness and strengthen the national economy.

3. Push for strengthening of the national innovation system in the
areas of production process and marketing with a focus on the overall
strengthening of sustainable global competitiveness towards an
innovation-driven economy.

To support the acceleration and expansion of economic development in
Indonesia, the central government has set a number of major programs
in collaboration with key stakeholders including government ministries
and the private sector. The focus of development is divided into eight
main programs: agriculture, mining, energy, industrial, marine,
tourism, telecommunication, and the development of strategic areas.

The eight main programs consist of 22 main economic activities:Palm
Oil, Rubber, Cocoa, Animal Husbandry, timber, Oil & Gas, Coal, Nickel,
Copper, Bauxite, Fishery, Tourism, Food Agriculture, Jabodetabek Area,
Sunda Straits Strategic Area, Transportation, Equipment, ICT,
Shipping, Textiles, Food Beverages, Steel, Defense and
Equipment



Economic Corridors
Important part of the MP3EI is the development of economic corridors
in Indonesia based on the potentials and advantages inherent to each
region throughout the country. By taking into consideration these
potentials and strategic roles of each major island, six economic
corridors have been identified:

Sumatra : Center for production and processing of natural resources
and the nation’s energy reserves

Java : Driver for national industry and service provision

Kalimantan : Center for production and processing of national mining
and energy reserves

Sulawesi : Center for production and processing of national
agricultural, plantation, fishery, oil & gas, and mining

Bali - Nusa Tenggara : Gateway for tourism and national food support

Papua - Moluccas : Center for development of food, fisheries, energy,
and national mining


MP3EI is an integral part of the national development planning scheme
and is not meant for substituting the existing Long-Term Development
Plan 2005-2025 (Law No. 17 year 2007) and the Medium-Term Development
Plans (Presidential Decree No. 7 year 2009). MP3EI is formulated in
consideration of the National Action Plan for Greenhouse Gas (Rencana
Aksi Nasional Gas Rumah Kaca - RAN GRK) as a national commitment which
recognizes the global climate change.