President outlines economic challenges, opportunities
The Jakarta Post, Jakarta | Fri, 04/01/2011 3:51 PM | Business

President Susilo Bambang Yudhoyono outlined seven economic challenges and opportunities for Indonesia in a speech at the Indonesian Chamber of Commerce and Industry (Kadin) national leaders’ meeting 2011, at the Ritz Carlton Hotel in Jakarta.

According to Yudhoyono, Indonesia needs a significant source of finances to develop the economy for the next 15 years. The gross domestic product (GDP) of Indonesia is currently valued at US$700 billion and is targeted to surpass US$4 trillion by 2025.

“Out economic structure can’t remain in this state if we want to attain that [target]. The manufacturing and service sectors must be developed,” the President said.

He added that the economic regions outside of Java Island have not been optimally developed. Economic activity in Java contributes 58 percent of the overall national economy. This must not carry on because the island’s resources are diminishing. The President, therefore, challenged businessmen to develop the economies of areas outside Java.

Another economic opportunity, the President said, was supplying the ever-increasing need for electricity, since demand increases by 3,000 megawatts annually. It is predicted that by 2025, the need for electricity would reach 80,000 megawatts.

“There is great opportunity in the energy and electricity generator sector,” Yudhoyono added, as reported by

The next opportunity he identified was in the infrastructure sector. According to the President, massive construction projects for seaports, airports and toll roads are necessary to improve connectivity within the country.

Besides infrastructure, the President also said that providing basic needs to the country’s population of 240 million people with increasing purchasing power was a business opportunity. It is especially true for companies providing food, energy and water.

Yudhoyono also said that the large funds Indonesia needed to develop gave businessmen a chance to investment. He said that a fund of US$300 billion from state-owned enterprises, private companies and partner countries was ready to be spent on projects that boost economic development.

Lastly, Yudhoyono said that strong cooperation between businessmen and the government was required to ensure that all regulations were obeyed for the benefit of the public.

Source :
Definitions of :
1. Gross Domestic Product (GDP) : the measure of an economy adopted by the United States in 1991; the total market values of goods and services produced by workers and capital within a nation’s borders during a given period (usually 1 year).
2. Infrastructure (Economic) : includes physical facilities such as roads, rail, ports, airports, reservoirs, reticulated water, sewerage, levees, drainage and irrigation facilities, telecommunications, power generation and electricity and gas distribution.
3. Purchasing power : Purchasing power is the number of goods/services that can be purchased with a unit of currency. For example, if you had taken one dollar to a store in the 1950s, you would have been able to buy a greater number of items than you would today, indicating that you would have had a greater.
4. Business opportunity : A business opportunity (or bizopp) involves the sale or lease of any product, service, equipment, etc. that will enable the purchaser-licensee to begin a business.