We all already knew how Indonesia’s doing in international trading on the previous post. This time, we should see briefly how others see Indonesia in the past few years and years ahead. Indonesia, as everyone acknowledges is rich of its natural resources. Indonesia has a lot of potential to do trading with any resources Indonesia has. But, will Indonesia play it well in the future?
People usually judge the country for doing well is by its economic growth, the poor people it has. McKinsey&Company on 2012 explained the myths regarding Indonesia’s growth including its economy. The first myth says that Indonesian economy is not stable, which was argued because Indonesia doing really well in exporting and has a strong domestic market. Like I said before, Indonesia got advantage on resources but according to the McKinsey it is not actually the strong point to boost the economic growth of Indonesia anymore (crude oil, natural gas). Indonesian economy, according to McKinsey is likely to overtake United Kingdom and Germany and crowned as number 7 of the world largest economy in 2030.
In order to make the prediction becomes true, Indonesia better deal with the challenge well. First, Indonesia has to make an increase the growth of its labour in terms of productivity to 4,6%. Second, Indonesia has to avoid income inequalities. Third, Indonesia should manage the consumptive characteristic of Indonesian to prevent the country for running out of capital. Another challenge McKinsey shares is the need to focus on economic sectors like agriculture and fisheries, resources plus the human development. Speaking of resources, Indonesia has a few core export commodities supported by it. Oil palm to be exported to Germany, France, Taiwan and Asian Countries, etc. Forest products to Myanmar, Kenya, Egypt, Pakistan, etc. Shrimp to Thailand, United Arab Emirates, Brazil, etc. Cacao to United States, Japan, Belgium, South Korea, etc. and there’s Indonesian coffee exported to Malaysia, Netherlands, Spain, England and many more.
We should remember Indonesia has international policy doctrine says “A Million Friends and Zero Enemies”. With that doctrine, we can make a friendship and also expand our export markets, it should be beneficial if we interpret the policy well. About how well Indonesia will do in the future depends on how we see, we expect from Indonesia and what we, young people do to Indonesia.
Salwa Ni'matul Maula (1701315806)