A National Seminar to Celebrate the National Resilience Institute Alumni (IKAL) Regular Course (KRA) 25/1992 Anniversary

Picture 1. Members of the National Resilience Institute Alumni (IKAL) Regular Course (KRA) 25/1992

The national seminar is hosted by a collaboration among the National Resilience Institute Alumni (IKAL) Regular Course (KRA) 25/1992, Ministry of Industry of Republic Indonesia, and Purnomo Yusgiantoro Center (PYC). It was held at the Indonesian Ministry of Industry on September 25, 2017. The main theme of the seminar is the Threat Assessment in Indonesian National Life on National Resilience Perspective Focusing on the Economic Aspects of Real Sector, Fiscal and Monetary Sector. This is the third seminar conducted as a part of IKAL KRA 25/1992 anniversary celebration. The main goal of the seminar is to present important considerations or inputs for the Indonesian Government in making their policy process.

The opening speech is by the Indonesian Minister for Industry, Mr. Airlangga Hartarto. Mr. Hartarto gave a very interesting presentation on “The Role of the Real Sector to National Economic Resilience”. He stated that Indonesia’s GDP in G20 was ranked 16th, while based on United Nations Industrial Development Organization (UNIDO) 2017 International Yearbook of Industrial Statistics, the Market Value Added (MVA) of Indonesia was ranked 9th, with the amount of US$ 225,673,800,000 or a worldwide share of 1.8%, similar to Brazil and UK.

In the second quarter of 2017, the Indonesian industry has a strong performance, with increased growth in all sectors, reaching the Ministry’s target for this year. The performance of the industrial sectors contributes significantly to Indonesia’s GDP, with the processing industry contributing to 20.26% (2nd quarter of 2017). Mr. Hartarto also highlighted that based on Global MVA Rank, Indonesia is currently in the top 10 manufacturers in the world, and in the first place in ASEAN. Mr. Hartarto stated that the Ministry supports Mr. Jokowi’s ambitious plan to develop the Indonesian industry not only in Java but in Indonesia as the whole nation. Despite these positive outcomes in the industry sector, Mr. Hartarto mentioned three main challenges Indonesia is facing until today. They are (1) job creation, (2) digital-based economy concept, and (3) industry revolution, which rely on the robotic system.

Picture 2. During the press conference with the Minister of Industry, Mr. Airlangga Hartarto and Prof. Purnomo Yusgiantoro

To mitigate these challenges, the Ministry of Industry has discussed plans to grant vocational secondary schools that have programs focusing on the advancement of modern industry in Indonesia. Graduates do not only receive a diploma but they will also receive a certificate on passing accreditation and for them to be able to speak English. In this way, Graduates are expected to get a job in less than three months.

After Mr. Hartarto’s speech, the seminar was followed by a panel discussion. The seminar invited economic experts as speakers. The speakers are Dr. Paul Soetopo, Prof. Rhenald Kasali, Dr. Hartadi A. Sarwono, and Prof. Roy Sembel. The seminar also followed by responses from Ir. Elwani Anwar, Dr. I. Soepomo, Prof. Dorodjatun Kuntjoro, and Dr. Pratolo Priyambodo.

Picture 3. Panelists on stage. Left to right: Prof. Roy Sembel (Dean of IPMI International Business School), Dr. Hartadi A. Sarwono (Commissioner of Bank Negara Indonesia 1946), Prof. Rhenald Kasali (Professor of Management Science at Universitas Indonesia), Dr. Paul Soetopo (Senior Advisor Universitas Pelita Harapan, Institute for Economic Analysis of Law and Policy) and the Moderator

The seminar is closed with a brief conclusion delivered by Dr. Chatib Basri. In the conclusion, he stated that Indonesia as one of emerging market countries will follow other emerging market countries to dominate the world’s top 10 economies in 2050 (GDP at PPPs). Based on IMF report in 2016 and PwC projections to 2050, Indonesia will be in the 4th position. He concluded with five main points for Indonesia to become the World’s Top 5 in 2050; (1) sources of financing with prudence principles, (2) adaptable/agile policies, (3) inclusive growth, (4) paying attention to the impact of balance payments on foreign investment, and export-oriented sectors, and (5) improve the quality of human resources.

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