Jan 22, 2008

Not just DOUBLE-TRACK line, we need TRIPLE TRACK



FROM The Jakarta Post I know that President Susilo Bambang Yudhoyono is scheduled to commission a double-track railway link between Kutoarjo in Purworejo, Central Java, and Yogyakarta on Tuesday, 22nd of January 2008. The event will take place at the Kutoarjo station, state railway company Kereta Api Indonesia spokesman Noor Hamidi said Monday. He said the 64-kilometer track was constructed from 2004 to 2007 at a total cost of Rp 900 billion provided by the Japanese government through the Japan Bank for International Cooperation. At the same occasion, Yudhoyono would also commission an electric train depot of Kereta Api's Jabotabek (Jakarta-Bogor-Tangerang-Bekasi) division in Depok, West Java, by a teleconference facility at the Kutoarjo station. The title of JakartaPost's article is "SBY to inaugurate double-track line".

Ladies and gentlemen,
From www.businessweek.com/magazine we memorize that on 2006 our cabinet have set up economic objectives to be achieved in the next five years. We have to have 6% to 7% growth over the next five years just to create jobs. Our government's development strategy is based on what SBY’s the triple track strategy.

The first track is to achieve sustainable higher growth through a combination of strong exports and increased investment, both domestic and foreign. The second track is to stimulate the performance of the economic sectors to create employment. And the third track is to promote the development of the rural economy and agriculture to alleviate poverty.

SBY said on business week that, “By 2009, we aim to reduce the unemployment rate from 9.5% to 5.1%, and we seek to cut the poverty rate in half, to 8.1%. We also seek to increase growth on average of 6.6% per annum during the next five years. But we want to do more than pump up numbers. We intend to create quality growth that creates good jobs for around 2 million new job seekers each year. We also aim to improve the climate of doing business within Indonesia”.

Yet for the first time in years from 2005 Indonesia has reason for some pesimis. Connected with world economy and depreciation between Rupiahs and the dollars, and the oil.
On RKP or Rencana Kerja Pemerintah (Government’s Document Planning in year), they plan to take 6,8 percent growth. Assume that 1 percent could absorb 215 thousands people (SMERU assumption). CONCLUSION: We need the implementation action by triple track strategy, not just DOUBLE TRACK
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Annex: Pak Yudhoyono is the retired general turned political reformer, who holds a PhD in agriculture, is also overseeing a long-sought-after economic recovery. The economy shot up 6.4% year-over-year in the first quarter, the best showing since 1996. And foreign investment is starting to stream back into this $255 billion economy, after slowing to a trickle since the mid-1990s.
The attempt is by implementing what we would call the triple track strategy. The government of Indonesia (GoI) has declared triple track strategy strategy for 2004-2009. That’s growth, employment, and poor. Growth means pro-growth, to achieve sustainable higher economic growth through a combination of strong exports and increased investments –both domestic and foreign. From 5.5% in 2005 become 7.6% in 2009 economic growth.
About 70% of our poor people are living in the country side, are working in the agriculture sector, around 40 millions. And another 20 millions of the near poor, they are mostly living in the country side and in the agriculture sector. So if we could improve, if we could revitalize the agriculture sector, and rural economic development, we believe very strongly in the years to come we can reduce significantly the number of the poor people by stimulating our agriculture and rural economic development.
If we remain on track with the the triple track strategy strategy, we will be able to meet the economic target set by my government immediately upon assuming office. Economic growth can only be accelerated if we increase productivity in every sector of the economy. And such an increase in productivity will only take place if macro-economy reforms are continued and synchronized with various reforms at the micro level. We can be assured that GoI is actively persuing various reforms to improve investment climate, to ensure flexibility of the labor market and to combat corruption in order to reduce high cost economy.
On 2007, the Government of Indonesia launched “National Program on Community Empowerment” or PNPM (Program Nasional Pemberdayaan Masyarakat). Specially in Social Department, we launched BLPS or Bantuan Langsung Pemberdayaan Social (Conditional Cash Transfer for Social Empowerment).
On September 7, 2006, the President of the Republic Indonesia has declared a new government policy to accelerate poverty reduction and jobs creation in the framework to achieve the target in the mid term national development plan to halve the number of poor people by the year of 2009. The GOI has launched the National Program for Community Empowerment (PNPM= Program Nasional Pemberdayaan Masyarakat) as a main vehicle or program instrument to accelerate poverty reduction and jobs creation –start in fiscal year 2007.
PNPM (Program Nasional Pemberdayaan Masyarakat or National Program for Community Empowerment) is adopted from the success of Kecamatan Development Program (PPK =Program Pengembangan Kecamatan) and Urban Alleviation Poverty Program (P2KP= Program Penanggulangan Kemiskinan Perkotaan).

So we need not just double track but TRIPLE TRACK to be implemented. We hope the President not just inaugurate double-track line. That's a simple world -coz just talking about the train track. The real problem is ...implemented triple track. Pro employment, high income, and the quality of the growth. Its a real problem

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