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Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
Prerequisites to Innovation-driven Economy by Faisal Basri
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Prerequisites to Innovation-driven Economy by Faisal Basri

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  • 1. PREREQUISITES TOPREREQUISITES TO INNOVATION-DRIVEN ECONOMY:INNOVATION-DRIVEN ECONOMY: THE CASE OF INDONESIATHE CASE OF INDONESIA Faisal Basri 13 September13 September 20132013
  • 2. Part IPart I Our Identity as a Maritime CountryOur Identity as a Maritime Country
  • 3. The uniqueness of IndonesiaThe uniqueness of Indonesia Indonesia has a coastal line of 95,181 km, the 4th longest In the world with a wide variety of marine habitats and other natural resources.
  • 4. The Largest archipelagic stateThe Largest archipelagic state “Untuk membangun Indonesia menjadi negara besar, negara kuat, negara makmur, negara damai yang merupakan National Building bagi negara Indonesia, maka negara dapat menjadi kuat jika dapat menguasai lautan. Untuk menguasai lautan kita harus menguasai armada yang seimbang.” (Ir. Soekarno dalam National Maritime Convention I (NMC), 1963)
  • 5. Price disparities (Rupiah)Price disparities (Rupiah) Region Rice Wheat flour Sugar Cooking oil Salt East Jawa 4,250 3,606 6,000 4,150 1,600 West Kalimantan 4,400 4,000 5,800 4,500 2,450 East Kalimantan 4,500 4,000 6,500 4,500 2,000 South Sulawesi 4,400 3,500 6,500 4,500 2,000 East Nusa Tenggara 4,200 4,500 5,800 6,300 2,000 Merauke 5,000 7,000 7,000 6,670 3,000 Nabire 6,000 10,000 11,000 11,000 4,000 Paniai 18,000 7,500 8,000 7,000 8,000 Source: Ministry of Trade.
  • 6. Which one cheaper?Which one cheaper? “Medan” orange, Indonesia Mandarin orange, China Source: World Bank
  • 7. Prices of oranges…Prices of oranges…  Prices were measured in a supermarket in Jakarta  Jeruk Medan……Rp. 20,000 per kg  Jeruk China…………..Rp. 17,000 per kg  WHY IS THIS THE CASE? Source: World Bank
  • 8. This explains why oranges from Medan areThis explains why oranges from Medan are more expensive to some extent….more expensive to some extent….
  • 9. Cement in Papua is 20 times more expensive than in Jakarta because of shipping costs Container Shipment cost: Padang – Jakarta = US$600 Jakarta – Singapore = US$185 Other ironic factsOther ironic facts Source: R.J. Lino’s presentatatiom, March 2011.
  • 10. Logistics performance index, 2012, n=155Logistics performance index, 2012, n=155 Source: World Bank, Logistic Performance Index: LPI Results 2012 (http://lpisurvey.worldbank.org/) Country LPI rank LPI score Customs Infra- structure International shipments Logistic competence Tracking & tracing Time- liness Singapore 1 4.13 4.10 4.15 3.99 4.07 4.07 4.39 Hong Kong 2 4.12 3.97 4.12 4.18 4.08 4.09 4.28 China 26 3.52 3.25 3.61 3.46 3.47 3.52 3.80 Malaysia 29 3.49 3.28 3.43 3.40 3.45 3.54 3.86 Thailand 38 3.18 2.96 3.08 3.21 2.98 3.18 3.63 Brazil 45 3.13 2.51 3.07 3.12 3.12 3.42 3.55 India 46 3.08 2.77 2.87 2.98 3.14 3.09 3.58 Philippines 52 3.02 2.62 2.80 2.97 3.14 3.30 3.30 Vietnam 53 3.00 2.65 2.68 3.14 2.68 3.16 3.64 Indonesia 59 2.94 2.53 2.54 2.97 2.85 3.12 3.61 Cambodia 101 2.56 2.30 2.20 2.61 2.50 2.77 2.95 Lao, PDR 109 2.50 2.38 2.40 2.40 2.49 2.49 2.82 Myanmar 129 2.37 2.24 2.10 2.47 2.42 2.34 2.59
  • 11. Economic disintegration within IndonesiaEconomic disintegration within Indonesia Source: R.J. Lino’s presentatatiom, March 2011.
  • 12. The sea unites IndonesiaThe sea unites Indonesia
  • 13. But…. the solution is this!!!But…. the solution is this!!!
  • 14. Part IIPart II Perekonomian IndonesiaPerekonomian Indonesia
  • 15. Other potentials in food sectorOther potentials in food sector  Available of rich volcanic soil in a great extent. Of the 188 million hectare land area, around 94 million hectares are biophysically suitable for agricultural activities (e.g. physiographic, shape of regions, slopes, and climate)  High level of rainfall  Tropical climate that is suitable for growing various kinds of plants and fish  Rare occurrence of natural disturbances such as hurricane and heat wave
  • 16. Trade deficit: food productsTrade deficit: food products Sources: Badan Pusat Statistik. US$ billions
  • 17. Weighted total of all category scores (0-100 where 100 = most favourable) Country Ranking Score United States 1 89.5 France 4 86.8 Netherlands 5 86.7 New Zealand 11 82.7 Australia 14 81.1 Japan 16 80.7 South Korea 21 77.8 Israel 22 77.7 Malaysia 33 63.9 China 38 62.5 Thailand 45 57.9 Viet Nam 55 50.4 Philippines 63 47.1 Indonesia 64 46.8 Myanmar 78 37.2 Congo 105 18.4 Source: Economist Intelligence Unit, Global food Security index 2012., London, 2012. Global food security index 2012Global food security index 2012
  • 18. Trade deficit: oil and gasTrade deficit: oil and gas *January-July. Source: Badan Pusat Statistik. -25 -20 -15 -10 -5 0 5 10 15 20 25 2002 2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Gas Oil & oil products Oil & gas US$ billions
  • 19. Trade balance of oil and oil productsTrade balance of oil and oil products   2003 2004 2005 2006 2007 2008 2009 2010 2011 2012 2013* Crude Oil Exports 5,621 6,241 8,146 8,169 9,226 12,419 7,820 10,403 13,829 12,293 5,936 Imports -3,928 -5,831 -6,797 -7,853 -9,057 -10,062 -7,362 -8,531 -11,154 -10,803 -8,075 (X - M) 1,694 410 1,349 316 169 2,357 458 1,872 2,675 1,490 -2,139 Oil Products Exports 1,548 1,654 1,932 2,844 2,879 3,547 2,262 3,967 4,777 4,159 2,385 Imports -3,583 -5,892 -10,646 -11,080 -12,787 -20,231 -11,129 -18,018 -28,134 -28,680 -16,399 (X - M) -2,035 -4,238 -8,714 -8,236 -9,908 -16,684 -8,876 -14,051 -23,357 -24,521 -14,014 Total Exports 7,169 7,896 10,078 11,013 12,105 15,966 10,082 14,370 18,606 16,452 8,321 Imports -7,510 -11,724 -17,443 -18,933 -21,844 -30,293 -18,491 -26,549 -39,288 -39,483 -24,474 (X - M) 342 -3,828 -7,365 -7,920 -9,739 -14,327 -8,409 -12,179 -20,682 -23,031 -16,153 * January-July. Source: BPS.
  • 20. Trade deficit: manufacturing productsTrade deficit: manufacturing products US$ billions Sources: Badan Pusat Statistik.
  • 21. Source: World Bank, “Indonesia Economic Quarterly: Maintaining Resilience,” October 2012. Indonesia’s exports have shifted toward rawIndonesia’s exports have shifted toward raw commodities & resource-based manufacturedcommodities & resource-based manufactured (Share of Indonesia’s non-oil and gas exports, percent)
  • 22. Exports were more dominated by limitedExports were more dominated by limited number of commoditiesnumber of commodities Source: World Bank, Indonesia Economic quarterly, July 2013: 3. Export composition, 2012 (percent)
  • 23. Foreign merchandise tradeForeign merchandise trade 2010 2011 2012 2013* 2010 2011 2012 2013* Total export 157.7 203.5 190.0 106.2 35.4 29.0 -6.6 -6.1 Non-oil and gas 129.7 162.0 153.1 87.6 33.0 24.9 -5.5 -2.7 Oil and gas 28.0 41.5 37.0 18.6 47.5 48.3 -10.9 -19.4 Total import 135.6 177.4 191.7 111.8 40.0 30.7 8.0 -0.9 Non-oil and gas 108.2 136.7 149.1 85.6 39.0 26.2 9.0 -3.4 Oil and gas 27.4 40.7 42.6 26.2 44.2 48.4 4.6 8.5 Surplus (Deficit) 22.1 26.1 (-1.7) (-5.6) Non-oil and gas 21.5 25.3 4.0 2.0 Oil and gas 0.6 0.8 (-5.6) (-7.6) Billion US$ Growth (yoy) Description *January.-July.. Source: BPS.
  • 24.   2011 2012 Q1-12 Q2-12 Q3-12 Q4-12 Q1-13 Q2-13 I. CURRENT ACCOUNT 1,685 -24,431 -3,164 -8,176 -5,264 -7,827 -5,819 -9,848 A. Goods, net (Trade account) 34,783 8,618 3,810 818 3,190 801 1,602 -601 1. Exports, f.o.b. 200,788 188,496 48,353 47,538 45,549 47,056 45,231 45,670 2. Imports, f.o.b. -166,005 179,878 -44,543 -46,720 -42,360 -46.255 -43,629 -46,272 B. Services, net -10,632 -10,331 -1,983 -2,790 -2,359 -3,198 -2,480 -3,070 C. Income, net -26,676 -26,748 -6,048 -7,101 -6,955 -6,643 -6,044 -7,140 D. Current Transfer, net 4,211 4,029 1,058 898 861 1,213 1,102 962 II. CAPITAL & FINANCIAL ACCOUNT 13,767 25,148 2,096 5,087 5,885 12,080 -328 8,199 A. Capital Account 33 37 5 3 8 22 1 2 B. Financial Account 13,734 25,111 2,091 5,085 5,878 12,058 -329 8,196 1. Direct investment 11,728 13,982 1,550 3,747 4,539 4,146 3,876 3,324 2. Portfolio investment 3,806 9,206 2,628 3,873 2,516 190 2,760 2,529 3. Other investment -1,801 1,922 -2,087 -2,535 -1,177 7,722 -6,966 2,343 III. NET ERRORS & OMISSIONS -3,395 -503 34 277 213 -1,027 468 -827 IV. RESERVES & RELATED ITEMS -11,857 -215 1,034 2,811 -834 -3,225 6,615 2,477 Balance of paymentsBalance of payments (US$ million)(US$ million) Source: Bank Indonesia.
  • 25. Part IIIPart III Human Resources and InnovationHuman Resources and Innovation
  • 26. Human development indexHuman development index Sources: UNDP, Human Development Report 2013. Pada tahun 2030, HDI bisa mencapai tingkat seperti Malaysia sekarang.
  • 27. HDI in selected countries, 2012 (n = 186)HDI in selected countries, 2012 (n = 186) Sources: UNDP, Human Development Report 2013. HDI HDI Overall Change Adjusted Rank Country Value Value loss (%) in rank Rank 3 United States 0.937 0.821 12.4 -13 16 28 Czech Republic 0.873 0.826 5.4 9 19 45 Argentina 0.811 0.653 19.5 -8 53 71 Venezuela 0.748 0.549 26.6 -17 88 85 Brazil 0.730 0.531 27.2 -12 97 91 Colombia 0.719 0.519 27.8 -11 102 92 Sri Lanka 0.715 0.607 15.1 11 81 101 China 0.699 0.543 22.4 0 101 103 Thailand 0.690 0.543 21.3 0 103 108 Bolivia 0.675 0.444 34.2 -12 120 114 Philippines 0.654 0.524 19.9 4 110 121 Indonesia 0.629 0.514 18.3 3 118 127 Viet Nam 0.617 0.531 14.0 14 113 136 India 0.554 0.392 29.3 1 135 138 Lao, PDR 0.543 0.409 24.7 4 134 138 Cambodia 0.543 0.402 25.9 3 135 161 Haiti 0.456 0.273 40.2 -7 168 Inequality-adjusted HDI
  • 28. Profile of workforce by job statusProfile of workforce by job status Informal workers 54% Employees with no contract 38% Permanent contract employees 6% Employers 2% Source: World Bank, presented by Shubham Chaudhuri at Kompas Economic Panel Discussion, June 21, 2012. Pada tahun 2030, pekerja formal diharapkan mencapai 75%
  • 29. Source: BPS. Workers and Unemployment by educationWorkers and Unemployment by education 20.6 11.4 28.8 14.5 18.9 24.6 23.7 39.9 8.0 9.6 0 20 40 60 80 100 Workers Unemployed Diploma+ Senior high Juniorhigh Elementary Not completedprimary August 2011
  • 30. 30
  • 31. Approach to educationApproach to education  Proper approach: set the targets first Education is a function of:  Family  Peers  School inputs  Innate ability  Current approach: set the budget first
  • 32. Health expenditure, 2011Health expenditure, 2011 0 3 6 9 12 15 18 South Sudan Qatar Myanmar Indonesia Lao PDR Malaysia Bangladesh India Philippines Thailand Timor-Leste China Cambodia Russia Turkey Vietnam Israel South Africa Brazil Australia Norway Sweden Switzerland Germany France United States Health expenditure, total (% of GDP) Total health expenditure is the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation. Health expenditure, total (% of GDP) Total health expenditure is the sum of public and private health expenditure. It covers the provision of health services (preventive and curative), family planning activities, nutrition activities, and emergency aid designated for health but does not include provision of water and sanitation. Sources: World Bank, World Development Indicators.
  • 33. Selected basic health indicatorsSelected basic health indicators 1. % Age 5 are under weight: Percentage of children under age 5 falling two standard deviations or more below the median weight-for-age of the reference population, 2010 (UNDP) 2. Under 5 mortality: probability of dying between birth and exactly age 5, expressed per 1,000 live births, 2010 (UNDP) 3. Maternal mortality ratio: ratio of the number of maternal deaths to the number of live births in a given year, expressed per 100,000 live births, 2010 (UNDP) 4. Malaria: deaths due to malaria expressed per 100,000 people, 2008 (UNDP) 5. Tuberculosis: estimated rate per 100,000 population, 2011 (WHO) Country % Age 5 are under weight Under 5 mortality rate Maternal mortality ratio Malaria Tuberculosis Brazil 1.7 19 56 0.1 42 China 3.8 18 37 0.0 75 Thailand 7.0 13 48 0.4 124 South Africa 8.7 57 300 0.2 993 Malaysia 12.9 6 29 0.1 81 Indonesia 18.4 35 220 3.2 187 Vietnam 20.2 23 59 0.1 199 Sri Lanka 21.1 17 35 0.0 66 Philippines 21.6 29 99 0.2 270 India 42.5 63 200 1.9 181
  • 34. The global competitiveness index frameworkThe global competitiveness index framework Sources: World Economic Forum, The Global Competitiveness Report 2013-2014..
  • 35. Global competitiveness and its pillars (rank, n=148)Global competitiveness and its pillars (rank, n=148) Sources: World Economic Forum, The Global Competitiveness Report 2013-2014.. Country Innovation GCI (Total) Basic requirements Efficiency enhancers Innovation and sophistication factors Finland 1 3 7 9 2 Switzerland 2 1 3 5 1 Israel 3 27 39 26 8 Germany 4 4 9 8 4 Japan 5 9 28 10 3 Sweden 6 6 8 7 5 United States 7 5 36 1 6 Taiwan 8 12 16 15 9 Singapore 9 2 1 2 13 Netherlands 10 8 10 11 7 Korea 17 25 20 23 20 Malaysia 25 24 27 25 23 China 32 29 31 31 34 Indonesia 33 38 45 52 33 South Africa 39 53 95 34 37 India 41 60 96 42 41 Brazil 55 56 79 44 46 Thailand 66 37 49 40 52 Philippines 69 59 78 58 58 Vietnam 76 70 86 74 85 Russia 78 64 47 51 99 Yemen 148 145 145 144 139
  • 36. Part IVPart IV Strengthen the Heart of The EconomyStrengthen the Heart of The Economy
  • 37. Financial deepeningFinancial deepening Indonesia has yet to optimize its domestic resourcesIndonesia has yet to optimize its domestic resources Source: Solana (WEF) based on World Bank dan IMF
  • 38. The financial development index (1)The financial development index (1) Source: World Economic Forum, The Financial Development Report 2010. Country 2011 rank (n = 60) 2010 rank (n = 58) 2011 score (1-7) Change in score Banking Rank Banking score Hong Kong SAR 1 4 5.16 +0.12 3 5.43 United States 2 1 5.15 +0.03 21 4.19 Singapore 4 3 4.97 -0.08 16 4.40 Malaysia 16 17 4.24 +0.04 15 4.49 Korea 18 24 4.13 +0.13 20 4.21 China 19 22 4.12 +0.08 9 4.92 South Africa 29 32 3.64 +0.11 33 3.53 Brazil 30 31 3.61 +0.09 41 3.31 Thailand 35 34 3.32 -0.04 31 3.70 India 36 37 3.29 +0.05 43 3.12 Russian Fed 39 40 3.18 -0.04 57 2.35 Mexico 41 43 3.16 +0.09 47 2.82 Turkey 43 42 3.14 -0.02 34 3.48 Philippines 44 50 3.13 +0.17 36 3.41 Vietnam 50 46 2.98 -0.05 29 3.91 Indonesia 51 51 2.92 +0.02 53 2.69 Venezuela 59 55 2.44 -0.12 58 2.34 Nigeria 60 57 2.44 +0.03 56 2.43
  • 39. The financial development index (2)The financial development index (2) Source: World Economic Forum, The Financial Development Report 2010. Country 2010 rank (n = 57) 2009 rank (n = 55) 2010 score (1-7) Private credit to GDP (%) Bank deposits to GDP (%) United States 1 3 5.12 211 78 Singapore 4 4 5.03 91 113 Japan 9 9 4.67 95 183 Germany 13 12 4.49 102 104 Malaysia 17 22 4.20 96 100 China 22 26 4.03 n.a. 145 Korea 24 23 4.00 90 61 South Africa 31 32 3.53 162 63 Brazil 32 34 3.53 54 61 Thailand 34 35 3.37 78 84 India 37 38 3.24 48 63 Russian Fed. 40 40 3.21 39 31 Vietnam 46 45 3.03 90 74 Philippines 50 50 2.97 27 46 Indonesia 51 48 2.90 23 34 Bangladesh 55 54 2.55 36 50 Venezuela 56 55 2.55 27 31 Nigeria 57 52 2.43 24 21
  • 40. Source: World Bank. Domestic credit provided by the banking sector includes all credit to various sectors on a gross basis, with the exception of credit to the central government, which is net. The banking sector includes monetary authorities and deposit money banks, as well as other banking institutions where data are available (including institutions that do not accept transferable deposits but do incur such liabilities as time and savings deposits). Examples of other banking institutions are savings and mortgage loan institutions and building and loan associations. Domestic credit provided by banking sectorDomestic credit provided by banking sector
  • 41. Source: Asian Development Bank. Size of local currency bonds market (1)Size of local currency bonds market (1) % of GDP, March 2013
  • 42. Source: Asian Development Bank. Size of total local currency bonds market (2)Size of total local currency bonds market (2) % of GDP 102 74 73 48 27 35 17 31 0 37 215 123 106 90 74 69 46 39 21 14 0 50 100 150 200 250 December 2000 March2013
  • 43. Source: World Bank, World Development Indicators. Stock market capitalizationStock market capitalization 125 159 32 24 32 67 49 16 137 129 89 78 74 60 46 46 15 0 20 40 60 80 100 120 140 160 180 2000 2011 Percent of GDP
  • 44. Year of introduction of social insuranceYear of introduction of social insurance Industrial Unemploy- Family Country accident Health Pension ment allowance Belgium 1903 1894 1900 1920 1930 Netherlands 1901 1929 1913 1916 1940 France 1898 1898 1895 1905 1932 Italy 1898 1886 1898 1919 1936 Germany 1871 1883 1889 1927 1954 Ireland 1897 1911 1908 1911 1944 U.K. 1897 1911 1908 1911 1945 Denmark 1898 1892 1891 1907 1952 Norway 1894 1909 1936 1906 1946 Sweden 1901 1891 1913 1934 1947 Finland 1895 1963 1937 1917 1948 Austria 1887 1888 1927 1920 1921 Switzerland 1881 1911 1946 1924 1952 Australia 1902 1945 1909 1945 1941 New Zealand 1900 1938 1898 1938 1926 Canada 1930 1971 1927 1940 1944 U.S.A. 1930 -- 1935 1935 -- Sources: Christopher Pierson, Beyond the Welfare State, 3rd edition. Cambridge: Polity Press, 2006, p.110.
  • 45. Assumptions: 32 million formal workers; wages Rp 1.5 million/ month, contribution 5%, wage growth 10%, workers growth 6% Year Contributions Rp billion/year Accumulation Rp billion 1st 28.800 28.800 2nd 33.581 62.381 3rd 39.155 101.536 4th 45.655 147.191 5th 53.234 200.425 6th 62.070 262.495 7th 72.374 334.869 8th 84.388 419.257 9th 98.397 517.654 10th 114.731 632.385 Health insurance contributionsHealth insurance contributions Source: Hasbullah Thabrany, “Dampak Ekonomi Pelaksanaan SJSN,” presented at GP Farmasi Round Table Discussion on April 27th 2010.
  • 46. Pension funds (contribution = 6%)Pension funds (contribution = 6%) Pension funds are the very significant source of funds for long-term investments. Year Contributions Rp billions/year Accumulation Rp billions/year 1st 34,560 34,560 2nd 40,297 74,857 3rd 46,986 121,843 4th 54,786 176,629 5th 63,880 240,509 6th 74,485 314,994 7th 86,849 401,843 8th 101,266 503,109 9th 118,076 621,185 10th 137,677 758,862 Source: Hasbullah Thabrany, “Dampak Ekonomi Pelaksanaan SJSN,” presented at GP Farmasi Round Table Discussion on April 27th 2010.
  • 47. Part VPart V Strengthen the Heart of The EconomyStrengthen the Heart of The Economy
  • 48. Avoiding the middle-income trapAvoiding the middle-income trap 880 1,260 1,400 1,530 2,470 3,420 5,210 7,610 9,740 9,800 11,630 12,700 16,392 22,670 36,560 47,210 0 10,000 20,000 30,000 40,000 50,000 Cambodia Lao PDR Vietnam India Philippines Indonesia Thailand South Africa Mexico Malaysia Brazil Russia Taiwan Korea Hong Kong Singapore Sources: World Bank, World Development Indicators. High income Gross national Income per Capita, Current US$, 2012 ≥ US$ 12,616
  • 49. 0 2 4 6 8 10 First semester (Jan-Jun) Source: BPS. Non-tradable GDP Tradable Low quality of growth, 2000-2013Low quality of growth, 2000-2013 Percent
  • 50. FocusFocus  Agriculture  Maritime  IT
  • 51. Thank You Terima Kasih Email: faisal.basri@gmail.com Twitter: @faisalbasri Infografis: visuallyconomic.com Blog: kompasiana.com/faisalbasri Blog: faisalbasri01.wordpress.com

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