“If we can manage things well, then five to 10 or 15 years from now, we can really be a world power,” the president said. Those are bold words, but they are not without basis.
Indonesia has all the ingredients needed to become a major power. It has a stable political environment, a strong economy and a young and productive population. It is also rich in natural resources and has a solid manufacturing base.
These factors, however, must be supported by strong institutions and human talent. The country must also attract foreign capital and business talent to run its corporations and manage their expansion.
Indonesia will also not reach its goal if it does not invest heavily in infrastructure. Its roads are clogged and its airports and seaports are already overflowing. The absence of a guarantee for a steady power supply at a relatively stable price is also necessary to attract investment in the manufacturing sector. In short, in order to assure all those prerequisites, the country has to invest.
Asia’s other rising powers, China and India, have invested billions of dollars in infrastructure over the past few years. Indonesia must match such investments.
The government, together with the private sector, must also upgrade the country’s ailing education and health care systems. Both will provide the soft infrastructure to complement the bricks and mortar.
If Indonesia is to be a great power, it must have strong institutions that can dispense justice, provide security and protect religious freedoms. History has proven that no developing country has become rich and powerful without strong and independent institutions, and Indonesia is no exception.
The nation has a tremendous opportunity to leverage the shifting geopolitical landscape. But economic growth alone will not be enough for it to become a major power. The country needs to invest in its infrastructure, institutions and its people. It must have the right policy framework that encourages entrepreneurship and risk-taking.
Without legal certainty, for example, investors will be reluctant to plow their money into the economy, no matter how attractive the terms are in the other sectors. Rampant corruption should also be weeded out. Illegal levies and other hidden costs are only making business here more expensive, and therefore much less attractive than other countries in the region.
Yudhoyono’s vision may seem far-fetched, but it is not unattainable. The country must rise as one nation and concentrate all its resources to achieving this goal.
Source: TheJakartaGlobe
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