New Era of National Economy

Samarinda, 1/4/15. The direction of national development policy is based more on the added value of technology and the added value of industrial downstreaming. This is in accordance with the program National development of the Republic of Indonesia Working Cabinet led by the President of the Republic of Indonesia Ir.H. Joko Widodo and H. Yusuf Kalla and in accordance with the 2015-2019 National Medium Term Development Plan (RPJMN) which has been stipulated in Presidential Regulation Number 2 of 2015 with the development targets of leading sectors, namely: 1). Food Sovereignty; 2). Energy Sovereignty; 3. Maritime and Marine; 4. Tourism and Industry.

Said the Minister of National Development Planning/BAPPENAS Andrinof A. Chaniago when delivering a presentation entitled Directions for National Development Policy at the 2015 East Kalimantan Province Musrenbang in the context of Preparing the 2016 Regional Development Work Plan (RKPD) at the Convention Hall Building, Madya Sempaja Stadium Complex Samarinda, Wednesday, 1/4/15 which was attended by more than 100 participants and invitees.

Development by sector

Andrinof A. Chaniago, Minister of National Development Planning/BAPPENAS explained in more detail that the development target in the field of food sovereignty is aimed at increasing food availability through strengthening domestic production capacity for various commodities such as rice, corn, soybeans, sugar as well as meat and fish production. For the first three years, production focused on rice self-sufficiency. Meanwhile, for soybeans, the focus is on domestic consumption, especially to fulfill the production of tofu and tempeh. Meanwhile, production of sugar, beef and salt is focused on fulfilling household consumption. These various increases in production are also supported by various targets for developing facilities and infrastructure to increase production.

Meanwhile in the field of energy sovereignty, the target is aimed at developing various production sources of energy such as petroleum, natural gas and coal as well as increasing the electrification ratio and per capita electricity consumption.

Meanwhile in the maritime and marine sector, the targets are aimed at (1) strengthening its identity as a maritime country which includes resolving maritime boundaries and recording small islands; (2) building national connectivity which includes the development of sea highways, ports and pioneer vessels and (3) developing maritime and marine economics which includes the development of fishing ports, increasing marine conservation and fisheries production.

For the tourism and industrial sectors, the target is to increase the contribution of the tourism and industrial sectors to the economy.

Development based on Regions and Inter-Regions

The Minister of National Development Planning/BAPPENAS added that this is related to regional and inter-regional development targets which include development of villages and rural areas, development of border areas, development of disadvantaged areas, development of economic growth centers outside Java, and development of urban areas

It is hoped that these national development targets can be followed by increasing various developments, namely, firstly related to development and community targets which generally include increasing access and quality of education which is aimed at increasing various targets in the education sector, including the average length of schooling and literacy rates and various other targets in the education sector. Improvements are also expected to occur in access and quality of health services with the target of improving the health and nutritional status of the community, increasing control of communicable and non-communicable diseases and increasing equity and quality of health services. Apart from that, it is also hoped that there will be increased access to housing, especially for low-income communities, as well as access to adequate drinking water and sanitation.

Based on the mandate of Law Number 25 of 2004 concerning the National Development Planning System (SPPN), the preparation of the 2016 RKP must refer to the 2015-2019 RPJMN which is an elaboration of the 2015-2019 President-elect's Vision and Mission, namely "The Realization of a Sovereign, Independent and Personality Based on Mutual Cooperation". This vision is realized through 7 (seven) DEVELOPMENT MISSIONS, namely: (1) Realizing national security that is able to maintain sovereignty region, supporting economic independence by securing maritime resources, and reflecting Indonesia's personality as an archipelagic country; (2) Realizing an advanced, balanced and democratic society based on the rule of law; (3) Realizing a free-active foreign policy and strengthening its identity as a maritime country; (4) Realizing a high, advanced and prosperous quality of life for Indonesian people; (5) Creating a competitive nation; (6) Making Indonesia a country maritime affairs that are independent, advanced, strong and based on national interests and (7) Creating a society with personality in culture.

To demonstrate priorities on the path of change towards an Indonesia that is politically sovereign, economically independent and culturally distinctive, nine priority agendas were formulated. The nine priority agendas are called NAWA CITA, namely: (1) Bringing back the state to protect the entire nation and provide a sense of security to all citizens; (2) Building clean, effective, democratic and trustworthy government governance; (3) Developing Indonesia from the periphery by strengthening regions and villages within the framework of the Unitary State; (4) Strengthen the presence of the State in carrying out system reforms and law enforcement that is free of corruption, dignified and trustworthy; (5) Improving the quality of life of Indonesian people and society; (6) Increasing people's productivity and competitiveness in international markets; (7) Realizing economic independence by moving strategic sectors of the domestic economy; (8) Carry out a revolution in national character; and (9) Strengthening diversity and strengthening social restoration. These various priority development agendas are aimed at moving towards a better Indonesia.

The national development strategy outlines development norms aimed at improving the quality of human and community life; creating sustainable economic growth that does not cause widening development inequality; and carrying out development without reducing the carrying capacity of the environment and disturbing the balance of the ecosystem. For this reason, development implementation is carried out through 3 (three) dimensions of development, namely first, the dimensions of human and community development through education, health, housing and mental health; second is the development of superior sectors with priorities for food sovereignty, energy sovereignty, maritime and maritime affairs as well as tourism and industry; and third is the equality and regional dimension. For this reason, stable social, political, legal and security conditions are needed as a prerequisite for quality development.
By considering the main challenges, policy directions and development targets for 2015-2019, the 2016 RKP Theme Draft is "Accelerating Infrastructure Development to lay the Foundation for Quality Development".

The draft RKP theme emphasizes that one of the main problems hampering the acceleration of investment realization at this time is the limited infrastructure, including electricity supply. Fulfilling the availability of infrastructure is one of the main prerequisites that must be carried out in quality development aimed at developing people and society, which is inclusive and broad-based, and must not widen inequality between groups and between regions. Development activities must not damage or reduce the carrying capacity of the environment and the balance of the ecosystem in an effort to produce sustainable growth and prosperity. Infrastructure development is needed, primarily to support the priority agenda of food sovereignty, energy sovereignty, maritime, tourism and industry targeting broad social groups and regional targets that pay attention to equity.
In 2016, in order to increase its economic contribution to the Kalmantan and National regions, East Kalimantan Province is expected to grow by 5.6 percent. Meanwhile, high growth can reduce poverty to 4.7 percent. Meanwhile, the open unemployment rate can be reduced to 8.0 percent.

In an effort to achieve various development targets in East Kalimantan Province, it is necessary to align national and regional development planning in both medium-term and annual development plans. Alignment is adjusted to regional conditions, potential and characteristics which are adjusted to the division of government affairs between the government, provincial regional governments and district/city governments as determined based on statutory regulations.

In order to realize harmony between the RPJMD and the 2015-2019 RPJMN for provinces, districts and cities, joint regulations will be drafted with the aim of achieving the national development priority targets set out in the 2015-2019 RPJMN which require support from regional governments, both provincial and district/city, within the 2015-2019 period.

Harmony is realized in several ways. First, the strategy and direction of regional medium-term development policies that are in line with the main targets and development strategies outlined in the general national development policy, the macroeconomic framework, as well as the policy and strategy directions of each national development agenda (Nawa Cita) as stated in Book I of the 2015-2019 RPJMN. Second, general policies and regional medium-term development programs that are in line with achieving the targets of development plans in the fields as stated in Book II of the 2015-2019 RPJMN; and third, achieving regional medium-term development program targets that are in line with achieving regional development targets and directions as stated in Book III of the 2015-2019 RPJMN.

For provinces, districts and cities that have established RPJMD before the 2015-2019 RPJMN is set, alignment of the respective RPJMD is carried out in the preparation of the RKPD which is aligned with the RKP starting in 2015 and the following years until the end of the 2015-2019 RPJMN period. Meanwhile, alignment as referred to in paragraph (1) is carried out on priorities, targets, program plans and annual regional development activities with the national development agenda (Nawa Cita) in the RKP for the year concerned.

From the things mentioned above, other problems and challenges faced by the East Kalimantan Provincial Government can be summarized, including, (1) East Kalimantan's economic growth is below national economic growth; (2) The Open Unemployment Rate in East Kalimantan Province has relatively decreased and its momentum needs to be maintained; (3) East Kalimantan's poverty level is below the national poverty level, but greater efforts are needed to achieve national targets; (4) East Kalimantan Province's HDI is above the national average and needs to be maintained; (5) The level of economic inequality in East Kalimantan Province is in the high category. This shows that the economy in districts/cities in this province is not evenly distributed; (6) Most of the public loans made in East Kalimantan are consumptive in nature. This pattern is unhealthy because growth driven by consumption alone is not sustainable; and (8) The portion of capital expenditure which is public investment is quite large and its quality needs to be improved.

Meanwhile, strategic issues for the development of East Kalimantan Province include; (1) Increasing agricultural sector productivity; (2) Industrialization and development of quality employment opportunities; (3) Improving the quality of road infrastructure and electricity supply; (4) Improving the quality of human resources; (5) Mobilization of public savings and banking intermediation functions to encourage access to business capital; and (5) Improving the quality of regional government capital expenditure. (6) Increasing investment in the regions
Some recommendations and suggestions for the future include (1) Empowering small, medium and cooperative businesses, especially in terms of access to capital and mastery of appropriate technology; (2) Empowerment of farmers and fishermen, especially in terms of improving access to production factors (fertilizers, seeds, pesticides, superior seeds) including improving irrigation networks, counseling and promoting brands/images of regional superior commodities; (3) Increasing ease of business licensing; (4) Improving the quality of the road network; (5) Increasing regional electricity capacity/supply; (6) Increasing access to education, especially secondary education (general and vocational); (7) Increasing the portion of APBD capital expenditure which is prioritized in the infrastructure sector which is under regional authority; and (8) Increasing coordination between regional governments and monetary authorities at the regional level in creating a conducive business climate: increasing the banking intermediation function in the regions, credit guarantees and controlling regional inflation.

(Public Relations of Bappeda of East Kalimantan Province/Sukandar, S.Sos).