What does impact of MP3EI to accelerate and expand Economic Development?

When we knew MP3EI has been tremendous program to accelerate Indonesia Economic Development. MP3EI used to approach by sectoral and geographic has been emphasize with economic corridor.  This plan has been run middle of 2011 launched by President Republic of Indonesia. And, end of May 2013 MP3EI will celebrate for 2nd Anniversary since launched. So, what we’ve got impact of economic accelerating and expansion program?

In gradually, Government launched success story where are projects groundbreaking and inaugurating. By KP3EI as committee in charge to make sure project can be run, launched total investment project groundbreaking and inauguration around IDR 626 T, with composition real sectors with IDR 348 T and infrastructures around IDR 278 T. The achievement so far away from target where’s realisation projects until 2014 around 4000 T both of real sectors and infrastructures. It means government has to pursue implementation investment including in MP3EI until IDR 3374 T. I think is almost impossible implementation of projects run as like target in MP3EI document on 2014. At the end, MP3EI has still been minimalize impact for Indonesia’s Economic Development.

Minimalize impact of MP3EI for Indonesia Economic Development because KP3EI has not been “optimalized” to acclerate debottlenecking for all of projects. At the end, to many projects cann’t be run and operational on schedule both of infrastructures and real sectors. There are some bottlenecking for KP3EI to accelerate projects in MP3EI. First, KP3EI is not super power agency and has not been authority to decide and make a policy for debottlenecking projects. At the end KP3EI is just administrative agency where has worked to compile all of projects, bottleneck including in projects, and coordination function to connect within ministry or agencies. Second, “Not Business as Usual” is only jargon can not push all government ministry and or agencies to work more for accelation and expansion economic development. In MP3EI’s document spirit development had been sounded but it did not impact to government to do more. Eventually, economic acceleration and expansion can not be implemented on the target.

Third, KP3EI has been problem with coordination both internal (for each secretariat corridors) and external (within other institution). Bad coordination for Indonesia’s Government is not new thing, that why many programs created dan run can never create optimalize results. And, KP3EI is part of bad coordination in Indonesia’s Government. For example, with spirit “not business as usual” KP3EI should have clear agenda to accelerate and bottleneck projects. In fact, KP3EI can be run what should they do? At the end, we know the results of implementation projects so far from target in MP3EI’s document. Bad Coordination creates higher “cost of time lag of investment” its makes distortion economy than good coordination.

When we think about impact of MP3EI for Indonesia Economic, we can say MP3EI has been benefited for economic development. But it’s performed so far from being supposed. And then, minimalize contribution so creates minimalize benefit for Indonesian people. We talk about contribution to growth by some simply research MP3EI can create growth 0,5-1% over than before. The asumption is all projects including in MP3EI can run and operational on schedule. In fact, it’s assumption can not be required and has been potential down over than expectation. With minimilize realisation investment projects both infrastructures and real sectors, MP3EI is so far from spirit of economic development. If contribution for growth so little, how come to increase Indonesia people welfare? Eventually, with or without MP3EI, Indonesia still has high growth cause fundamental Indonesia economy today is very strong. But the question mark who’s got benefit from the high growth? I think still on few people Indonesia but they got high share of GDP.


published to in this link: http://ekonomi.kompasiana.com/moneter/2013/04/25/what-does-impact-of-mp3ei-to-accelerate-and-expand-economic-development-554752.html