Boost economic Development. Indonesia has long been projected as a country that will become the axis of the world economy. Along with the rise of the economic power of China, India, Brazil, Mexico and others.
Of course, this assessment is not far-fetched, because Indonesia has all the prerequisites to become a world economic power. Economic resources, large market and political stability.
These three things are the perfect combination to bring economic development to a high level. Unfortunately, various economic policy mistakes, power distortions. And the weakness in setting development priorities simply makes those prerequisites disappear. Boost economic Development.
As a result, the Indonesian economy becomes porous due to an overly open policy. The economic mafia is rampant and competitiveness is very low due to the undeveloped infrastructure and innovation.
The momentum has recently come back to promote faster economic development, which of course must be used in the best possible way. Boost economic Development.
Engagement in the Banking Sector
Boost economic Development. Since the 1980s, Indonesia has shifted its economic strategy towards promoting exports (outwardly) in order to increase the sustainability of economic growth.
Several steps have been taken and the results are decent. Even in 2006, the trade surplus reached nearly $ 40 billion. After that, however, export performance declined and reached a trade deficit in 2012 that has persisted to this day.
The contribution of exports to GDP also continued to decline, where it was around 25% in 2010 and weakened to 23% (2014). On the other hand, imports have increased their contribution to GDP. In 2010, the contribution of imports to GDP was 22.9% and rose to 24.77% in the third quarter of 2014 (BPS, 2014).
This means that the ratio of imports to GDP is greater than that of exports. This means that Indonesia imports more than it exports. Product diversity and deepening the industrial sector will become the main tasks of the government in the future. Economic competitiveness is also not encouraging for a number of known reasons. In the 2013/2014 period, Indonesia’s competitiveness ranking improved and rose to 38th place.
But neighboring countries also shot up. Thailand rose to 37th place, Malaysia to 24th and Vietnam also improved from 75th to 70th place (World Economic Forum, 2014). The main problems are infrastructure and logistics.
The cost efficiency of the company is an important point for increasing competitiveness.
Economic competitiveness and increasing exports cannot be separated from the role of the financial sector, particularly the banking sector. Unfortunately, the bank’s performance was not optimal to support the real sector.
The banking business supports the non-tradable sector more than the real sector and thus puts a strain on the economy. For other business news, you can access the warta ekonomi for information. / Dy
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