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Minister Airlangga on Balanced Development in Indonesia

By Cpiet Jumat, 15 September 2023 Pengunjung (168) 2 Mins Read
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Inp.polri.go.id - Jakarta. Coordinating Minister for Economic Affairs Airlangga Hartarto highlighted the need to address economic disparities resulting from concentrated growth, particularly on Java Island, emphasizing the government's commitment to achieving balanced development and optimizing logistics across Indonesia.
"Of course, we see that this imbalance is a result of the growth of economic centers. The President of Indonesia, Joko Widodo, always discusses economic growth centered on Java Island, and now we are shifting to the 'middle,' to the National Capital (IKN)," he said while addressing "New Era of Logistics Costs" on Thursday (14/9/2023) The government's strategic move to relocate the National Capital to a more central location is a key component of their efforts to decentralize economic activities. The Minister expressed optimism that by increasing port utilization to over 50 percent in Eastern Indonesia, the logistics sector will experience significant growth, leading to enhanced economic development and more balanced progress across the nation. Currently, average port utilization stands below 50 percent, with Eastern region ports facing notable imbalances in goods availability. Ports such as Jakarta's Tanjung Priok Port on Java Island register utilization rates as high as 90 percent, while Eastern Indonesian ports operate at a relatively lower capacity of around 60 percent. "We have to speed up the movement of commodities. Development must be evenly distributed so that goods can move efficiently from east to west and vice versa," Minister Airlangga said as quoted by antaranews.com The Minister underlined the pivotal role of the logistics sector in driving robust economic growth. By optimizing logistics, it's believed that the goal of achieving 6 percent economic growth outlined in the National Long Term Development Plan (RPJPN) 2025-2045 can be realized. Acknowledging the need for improvement, Minister Airlangga aims to transition from the current Incremental Capital Output Ratio ranking of 7 to a more efficient ranking of 5. "Our Incremental Capital Output Ratio is currently too high, at number 7. We must push it down to number 5, and logistics is the key. If we improve our logistics, our investments will yield better results," he explained. This revised version incorporates the keywords naturally and improves readability with shorter paragraphs and more concise sentences.
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