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Kadin: Reliance on Commodities Cause Weakening of Economy

30 June 2015 05:04 WIB

TEMPO.CO, Jakarta - Indonesia's economy has been weakening due to continued dependence on the country's commodities, an official of the Indonesian Chamber of Commerce and Industry (Kadin) said on Sunday.

"The Indonesian economy, which recorded growth the last 10 years, is now weakening because we have been 'trapped' by benefits from commodities for a long time and have forgotten how to develop industries and infrastructure," Deputy Chairman of Banking and Financial Affairs of Kadin Rosan P. Roeslani stated.

Therefore, Indonesia should realize its infrastructural and industrial development plans soon to revitalize the country's economic development, he emphasized, adding that infrastructure and industries were the primary instruments of growth of both national and regional economies.

Speaking at a coordination meeting with the Kadin office of East Nusa Tenggara in Kupang on Sunday, Roeslani had pointed out that dependence prices of commodities will not support economic stability as they largely depended on the market and international demand.

This means that self-reliance cannot be established in the future and for the economic stability of the nation.

"The issues we are facing currently should encourage us to review them to ensure economic development. We should realize our infrastructural and industrial development projects soon and not believe that it is too late to begin," Roeslani remarked.

Furthermore, Chief Economic Affairs Minister Sofyan Djalil stressed the importance of boosting investment, including in the infrastructure sector, to help advance the country's economic development.

Expediting the realization of investments in the next five years is expected to help improve the country's economic growth.

"If we can realize the investment target of Rp5.6 thousand trillion in the coming five years, there will be relatively high economic growth," the coordinating minister for economic affairs affirmed.

Djalil further noted that the government was optimistic that economic growth in the next few years will be supported by government projects, the private sector, and national investment.

Therefore, according to the minister, the government is implementing measures to enhance economic growth through the development of infrastructure and investments, to support industries in various regions across the country.

"However, we continue to hope for economic progress, expeditious infrastructural development, and speedy economic growth," he admitted.

ANTARA




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