REPORT "Weaknesses of Indonesian Economic"

Chamber of Indonesia Commerce and Industry (Kadin) declared Indonesian economy that is actually very promising for both domestic and foreign investors. However, there are still weaknesses seeing by Kadin of the economy that need to be addressed. Vice Chairman of Kadin Indonesia, Novian Anindya Bakrie said, promising Indonesian economy is evidenced by incoming investment, private consumption, and vibrant business world.

“But there are still some weaknesses that Indonesia’s economic structure needs to be addressed now,” said Anindya at Menara Kadin Jakarta, Wednesday (06/03/2013).

Anindya see Indonesia’s economic weakness is in the trade deficit. Currently due to larger imports than exports then it makes more Indonesian trade balance to be deficit. Moreover, the largest import of oil and gas.

On the other hand, Anindya also highlights subsidy of oil (BBM) to the people who actually are not even on target. Current budget fuel subsidy enjoyed by the rich instead.

“As the impact, the deficit and the high pressure gas imports that led to the weakening of the rupiah,” he added.

Again, the actual budget for infrastructure even neglected. He rated in the last few months that there is no improvement of government policy so that a problem cannot be resolved. Though foreign investors intending to invest in Indonesia as it will look up the bureaucratic infrastructure. If not good, then foreign investors will pull out of Indonesia.

MAKING REPORT

• The title 

 Weaknesses of indonesian economic

•  The summary   

Indonesia’s economic weakness is in the trade deficit. Currently due to larger imports than exports then it makes more Indonesian trade balance to be deficit. Moreover, the largest import of oil and gas. As the impact, the deficit and the high pressure gas imports that led to the weakening of the rupiah. The actual budget for infrastructure even neglected. rate in the last few months that there is no improvement of government policy so that a problem cannot be resolved.

•  The Content

- Reason

Indonesian economic weakness due to greater imports than exports, the largest import of oil and gas. 

- Result

Because imports greater than exports then it makes more Indonesian trade balance into deficit.

•  The conclusion 

Government should provide improvements and policy for this problem, the budget should be used to be on target. reduce the amount of oil and gas imports and exports should increase to the economy of Indonesia abroad in order to attract domestic and foreign investors back.