Pandangan dan pendapat yang dikemukakan dalam artikel ini adalah dari penulis dan tidak mencerminkan kebijakan resmi dari Badan Kebijakan Fiskal , Kementerian Keuangan , Republik Indonesia
The views and opinions expressed in this article are those of the authors and do not necessarily reflect the official policy from Fiscal Policy Agency, Ministry of Finance, Republic of Indonesia
Realizing the state budget’s capacity is still limited due to a high deficit ceiling, the private sector and state-owned enterprises (SOEs) should play a greater role in the development of the country’s infrastructure projects.
Based on data from the committee for Acceleration of Priority Infrastructure Delivery (KPPIP), of the total Rp 3 quadrillion (US$224,4 billion) in investments needed for the development of infrastructure projects in medium term, the government and SOEs can only provide about 40 percent.
Indonesia Korea Comprehensive Economic Cooperation Partnership (IKCEPA) arises from the desire of both countries to boost trade performance and make the free trade agreement more comprehensive. CEPA agreement with South Korea has targeted the reduction and elimination of tariffs that cover more products and services. This study analyzed the relationship between Indonesia merchandise trade cooperation with South Korea. Besides, look at the potential of the Korean market for goods exports from Indonesia featured. To deepen the study simple equilibrium analysis is used to analyze the potential of the South Korean market for goods exports Indonesia. The analysis showed that after the implementation of AKFTA in 2007, Indonesia merchandise trade performance by sector turned out to have an average growth of imports by 21.36 percent, higher than the average export growth of 8.19 percent. There are some items which have the potential to become a mainstay of exports to Korea that includes textiles, wood processing, manufacturing goods such as spare parts of household appliances, bicycles and others. Likewise, there are some agricultural products such as pineapple, guava, animals such as freshwater fish, crabs, cuttlefish and others. However, the export of these items to South Korea are still hampered by their tariff barriers. Forum IKCEPA cooperation can be a bridge to fill the gap between the two countries for tariff reduction, market acces and an increase exports of both countries.
Indonesia, as projected by McKinsey in 2012, would be the seventh largest economy on the earth by 2030. This outlook has been broadly discussed among scholars whether Indonesia’s performance in the context of economic growth, democracy, as well as in its evolving roles in international organizations and global society will lead the state to be a new emerging power.
Another institution that conveyed the identical tone concerning the rising of Indonesia in the near future is the Standard Chartered Bank in its special advisory, titled “The Super-Cycle Report.” Indonesian Finance Minister Sri Mulyani Indrawati has in some occasions, including when she had her first working meeting with parliament in August 2016, demonstrated her uppermost confidence that Indonesia will be a more prominent state in the next decades.