The Vision of Indonesia 2045, Millennials’ Opportunity for a More Inclusive Development

The Minister of National Development Planning (PPN)/Head of National Development Planning Agency (Bappenas), Bambang Brodjonegoro, providing a general lecture on Vision of Indonesia 2045 (Source: Bisnis.com)

In 2045, Indonesia will reach its 100 years of independence. The vision of Indonesia 2045 to be a sovereign, fair, and prosperous country is shadowed by challenges to overcome individual and local disparities.



The Ministry of National Development Planning/National Development Planning Agency held a Socialisation and Discussion on the Vision of Indonesia 2045 on January 8, 2019. This event was intended to gather inputs regarding Indonesia’s vision on its 100 year anniversary, namely an Indonesia that is sovereign, advanced, fair, and prosperous. 



“I ask all stakeholders to collaborate to achieve this vision because the government cannot work alone,” said the Minister of PPN/Head of Bappenas, opening the socialisation and discussion on the Vision of Indonesia 2045 event, early January.



Bambang said that there are four pillars for the Development of Indonesia 2045, namely human development, science and technology mastery, sustainable economic development, equal development, and national resiliency and good governance. These four pillars, especially the third one, reinforce the opinion that the developmental direction taken by Indonesia is inclusive development.



The equal development pillar aims to reduce income disparity across all layers of society, lessen the gap among regions, and develop equal infrastructure to eradicate acute poverty. Regarding this, the government has set out an ambitious target of reducing poverty to nearly zero (0.2 per cent) by 2045.



“Equal development at the local level will be continued by further promoting growth on the eastern part of Indonesia while maintaining the growth momentum of Java region,” said Minister Bambang.



As we know, the western part of Indonesia currently contributes 80 per cent to economic growth, while the eastern part is only around 20 per cent. To address this, Bappenas has developed a local development direction based on local potential.



Papua will be developed into the national food base and natural resource-based economic sector. Nusa-Bali and Maluku regions will be the location of international tourism and national fisheries. Sulawesi will be the base for the food industry and the Gate of Eastern Indonesia Region. Kalimantan will be directed to become the basis for the processing industry and national granary for energy.



Meanwhile, in the western hemisphere, Java Island remains the base for commerce and service. Sumatera will be developed to be the base of new industries and the Gate of Asia. With this, Bambang expects economic growth in the eastern part of Indonesia to increase to 25 per cent of the total growth.



To support economic equity, infrastructure development will be aimed at physical connectivity such as roads, bridges, airports, and ports. Virtual connectivity infrastructures like the internet and telecommunication will not be omitted. Not only that, other infrastructures related to basic needs such as education, health, and clean water will serve as instruments to reduce gaps.



“Infrastructure development will also consider anticipation against natural disasters and climate change,” stated Bambang.



The Government of Indonesia, including Bappenas, continues to work to achieve equal and inclusive development, as well as opening itself for suggestions from the people. One of Bappenas’ efforts to gain inputs on equal development is done through the Indonesia Development Forum (IDF). This forum, held by Bappenas and supported by the Government of Australia through Knowledge Sector Initiative, convenes all stakeholders, both government and non-government, to collectively find solutions through knowledge and best practices.



IDF 2017 focused on solutions to address gaps among income groups, with a grand theme of “Fighting Inequality for Better Growth”. IDF 2018 emphasized more on tackling disparities among regions in Indonesia, entitled “Pathways to Tackle Regional Disparities Across the Archipelago”. Meanwhile, the focus of IDF 2019 is to create opportunities for more inclusive development.



Millennials’ Era to Create their Opportunity 



In his presentation at the socialization and discussion on “the Vision of Indonesia 2045”, the Minister of PPN/Head of Bappenas, Bambang Brodjonegoro, discussed the role of youth in economic development in Indonesia, one of which is by creating job opportunities. Bambang said it was the entrepreneurial spirit that made Japan more advanced than Indonesia.



“To advance Indonesia, we need to drive millennials into entrepreneurs,” said Bambang, cited from IDNtimes.



With globalization, business competition no longer exists at the local level, but borderless and ageless. The rise of e-commerce causes everyone, from anywhere, to enter and compete with local entrepreneurs. Thus, it is inevitable that Indonesian entrepreneurs innovate to make their business sustainable and gain support from the government.



One of the pillars of the Vision of Indonesia 2045 is Sustainable Economic Development, which includes various directions in line with millennial, young entrepreneurs. The program is to improve the investment climate, engage in open and fair international trade, use industrial revolution 4.0 as the driver of economic growth, and develop the creative and digital economy.



To foster young entrepreneurs and high-quality workers, the 2019 State Budget (APBN) needs to focus on improving human resource, emphasizing on education, health, and social protection.



Budget allocation for education in 2019 is IDR 495.555 trillion. This amount is divided into three management, namely National Government Expenses of IDR 163.089 trillion, Education Budget through Local Transfer and Village Fund of IDR 308.375 trillion; and Education Budget through Financing of IDR 20.990 trillion. 



Education Budget through Local Transfer and Village Fund consists of, among others, Benefit for Primary School Civil Servant Teachers of IDR 56.867 trillion, School Operational Assistance (BOS) of IDR 51.226 trillion, Implementation Operational Assistance (BOP) for PAUD of IDR 4.475 trillion, Special Benefit for Primary School Civil Servant Teachers in special regions of IDR 2.306 trillion, and Special Autonomy (Otsus) estimated for education budget of IDR 5.014 trillion.



Meanwhile, the education budget allocated through financing is IDR 20.999 trillion, consisting of National Education Development Fund of IDR 20 trillion, and Research Endowments of IDR 990 billion.



APBN 2019 focuses on human resources so that creative and innovative youth are not only emerging in large cities but also across Indonesia. They will be the ones innovating in their respective regions to sustainably continue the local economic growth.



Innovation to overcome disparities and promote sustainable economic development always appears during the two previous Indonesia Development Forum. This international forum engages all sectors and their implementation, standing on four pillars, namely Inspire, Imagine, Innovate, and Initiate.



Inspire in IDF means sharing stories of change and best practices in overcoming disparities. Imagine is exploring the future of Indonesia that is more inclusive, fair, advanced, and sustainable. Innovate is offered through new and strategic breakthroughs in resolving disparity issues. Finally, initiate means turning discussion results in applicable action plans. Are you ready to be a part of IDF 2019?