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Indonesia Highlight Facts and Problems Where is Indonesia? Source: www.map-of-asia.us/ Area (sq km) Indonesia Japan Comparison Total 1,919,440 377,835 5.1 Land 1,826,440 374,744 4.9 93,000 3,091 30.1 Water Population (2008 estimation) Indonesia Japan Comparison Number of People Total % to total Number of People % to total 237,512,355 100 127,288,419 100 1.9 0-14 years 67,453,508.82 28.4 17,438,513.40 13.7 3.9 15-64 years 156,045,617.24 65.7 82,355,607.09 64.7 1.9 13,775,716.59 5.8 27,494,298.50 21.6 0.5 65 years and over Source: CIA Fact Book, Author’s calculation Quarterly and Yearly GDP Growth, Indonesia 2001-2007 (y.o.y, %) % 7.0 6.0 5.0 4.0 3.0 2.0 1.0 0.0 Q407 Q307 Q207 Q107 Q406 Q306 Q206 Q106 Q405 Q305 Q205 Q105 Yearly Q404 Q304 Q204 Source: Central Statistic Indonesia, Author’s calculation Q104 Q403 Q303 Q203 Q103 Q402 Q302 Q202 Q102 Q401 Q301 Q201 Q101 Quarterly Structural Change in the Indonesia Economy GDP at Market Price, by Industrial Origin, Indonesia 1970 Services 11% 9% Finance, Real Estate & Business Services 4% Finance, Real Estate & Business Services 3% Electricity, Gas & Manufacturing Water Supply Industry 0% 9% Agriculture 47% Trade, Hotel & Restaurant 14% Construction 6% Mining & Quarrying 5% GDP at Market Price, by Industrial Origin, Indonesia 2007 Electricity, Gas & Water Supply 0% Transport & Communication 7% Manufacturing Industry 12% Services 10% Agriculture 14% Mining & Quarrying 11% Finance, Real Estate & Business Services 7% Manufacturing Industry 26% Electricity, Gas & Water Supply 1% Source: Central Statistic and MOF Indonesia and , Author’s calculation Agriculture 21% Transport & Communication 6% Trade, Hotel & Restaurant 17% Trade, Hotel & Restaurant 15% Construction 8% Mining & Quarrying 26% GDP at Market Price, by Industrial Origin, Indonesia 1990 Services 10% Finance, Real Estate & Business Services 8% Agriculture 25% Transport & Communication 4% Transport & Communication 3% Trade, Hotel & Restaurant 19% Construction 3% GDP at Market Price, by Industrial Origin, Indonesia 1980 Services Construction 5% Electricity, Gas & Water Supply 1% Mining & Quarrying 13% Manufacturing Industry 20% Problems…. School Enrollment, Indonesia (% ) 100 90 80 70 60 50 40 30 20 10 0 1994 1996 1998 Population aged 7-12 years 2000 Population aged 13-15 years Source: Central Statistic Indonesia, Author’s calculation 2002 2004 Population aged 16-18 years 2006 Problems…. Number of People Living Below The Poverty-Line and Its Percentage of Population, Indonesia, 1996-2005 60 30% 24.2% 50 23.4% 25% 19.1% 17.5% 18.2% 17.4% 16.7% 20% 16.0% 35.1 36.1 37.3 38.4 37.9 38.7 48.0 34.0 20 18.4% 15% 30 49.5 Millions 40 10% 10 5% 0 0% 1996 1998 1999 2000 2001 Number of People Source: Central Statistic Indonesia, Author’s calculation 2002 2003 % to population 2004 2005 Problems…. External Debt Outstanding, Indonesia (Billions USD) 90 80 70 60 50 40 30 20 10 0 2007 2006 2005 Private 2004 2003 Source: Central bank, Indonesia, Author’s calculation 2002 2001 2000 1999 1998 1997 1996 Public Problems…. Government Budget Highlight, Indonesia 2007 Government Revenue and Grant Domestic Revenue Grant Government Expenditure Central Government Expenditure others Interest Payment Subsidies Regional Expenditure Primary Balance Surplus/Deficit Financing Domestic Financing Foreign Financing (net) Gross Drawing Amortization Source: MOF, Indonesia, Author’s calculation 637,799 635,927 1,873 669,881 443,510 257,137 78,910 107,463 226,371 46,828 -32,082 32,082 32,714 -19,530 33,192 -52,722 2008 781,354 779,214 2,140 854,660 573,431 384,191 91,366 97,875 281,229 18,060 -73,306 73,306 89,975 -16,669 42,989 -59,659 Highlight the Japanese Official Development Assistance (ODA) in Indonesia Muhammad Cholifihani Outstanding Japanese ODA to Indonesia World Bank, Japan and ADB assist the development of Indonesia under ODA scheme. Contribution of Japanese ODA to Indonesia is the biggest bilaterally (72,7% in 2004 and 72.9% in 2006) OUTSTANDING OF ODA GOVERNMENT EXTERNAL DEBT BY CREDITOR (Millions of USD) Creditor Bilateral 2002 2003 2004 2005 2006 2007 26,074.0 29,884.0 30,339.0 27,795,.0 28,107.0 28,540.0 1,584.0 1,604.0 1,521.0 1,573.0 1,470.0 1,345.0 Austria 864.0 1,013.0 1,049.0 871.0 914.0 946.0 Netherland 791.0 957.0 969.0 873.0 890.0 888.0 United Kingdom 356.0 368.0 370.0 236.0 239.0 217.0 18,902.0 21,646.0 22,061.0 20,138.0 20,348.0 20,833.0 Germany 1,083.0 1,384.0 1,425.0 1,351.0 1,433.0 1,493.0 France 1,377.0 1,657.0 1,698.0 1,495.0 1,558.0 1,586.0 Spain 382.0 417.0 415.0 457.0 440.0 421.0 Other Countries 735.0 838.0 831.0 803.0 814.0 811.0 29,112.0 29,977.0 28,905.0 26,566.0 18,837.0 19,055.0 8,310.0 8,582.0 8,869.0 9,140.0 9,409.0 10,177.0 788.0 884.0 949.0 1,003.0 1,322.0 1,552.0 10,802.0 9,776.0 8,943.0 8,107.0 7,421.0 6,822.0 IDB 138.0 151.0 163.0 203.0 397.0 233.0 NIB 170.0 155.0 139.0 121.0 105.0 91.0 65.0 79.0 79.0 71.0 74.0 79.0 IMF 8,829.0 10,239.0 9,654.0 7,806.0 0 0 EIB 7.0 111.0 109.0 116.0 109.0 102.0 MIGA 3.0 USA Japan Multilateral ADB IDA IBRD IFAD Priority sector of Japanese Assistance • In 2003, the Government of Japan initiated to strengthen its Official Development Assistance (ODA) policy with the new objectives are “to contribute to the peace and development of the international community, and thereby to help ensure Japan’s own security and prosperity” in order to response new world development challenges such as peace building and taking into account the views of Japanese people . • In 2004, the Government of Japan formulated the country assistance strategy for Indonesia that should be prioritized on the achievement of these three main areas of (i) Sustainable growth driven by private sectors (ii) Creating a democratic and equitable society (iii) Peace and stability, and the provision of maximum assistance to the Indonesian Government’s self-reliant efforts. Some crucial issues to be considered in the near future 1. 2. 3. Improvement of human resource development. Absorption of job opportunity is quite low. Low productivity and fiscal capacity for education. Promotion of economic growth. Slow movement of economic growth after Asian crisis. Expansion the job opportunity. The unemployment rate was quite high after Asian crisis. In 1998, unemployment rate was 5.5%, increase significantly by 9.6% in 2003. In 2007, unemployment rate was 10.4% (Continue..) 4. 5. 6. Improvement of environment quality Reducing poverty. Population below the poverty line is 38,4 million people or 15,6% of total population in Indonesia in 2002. In 2004 the people below the poverty line was 36,1 million people( 18,16 % of total population) . In 2006 was 39,1% or 17,6% of population . Declining the regional gap. The regional gap between East Indonesia and west Indonesia will be serious issue on development in the future. Conclusion • The outstanding of Japanese ODA has a smaller tendency. However, bilaterally, the contribution among bilateral donor countries is the biggest. • The priority areas of Japanese ODA may match with some crucial issues on development in the near future. ありがとうございました。 (Terima kasih) Lombok South Coastline Cockfight Local Sasak Children (Lombok) Barong Dance