Remarks At The Courtesy Call of CGI and Other International Friends

REMARKS BY THE PRESIDENT OF THE REPUBLIC OF INDONESIA
AT THE COURTESY CALL OF
THE CONSULTATIVE GROUP ON INDONESIA (CGI)
AND OTHER INTERNATIONAL FRIENDS
STATE PALACE, 15 JUNE 2006



Bismillahirrahmanirrahim,

Excellencies Ministers,
Ambasadors,
Head of International Organization,
Ladies and Gentlemen,

I am pleased welcome all of you to Jakarta after Concluding the 15th Meeting of the Consultative Group on Indonesia (CGI) yesterday. Let me begin by expressing, on behalf of the government and people of Indonesia, our deepest gratitude to all of you for the sympathies and the prompt and generous humanitarian assistance extended to Indonesia in the wake of the devastating earthquake affecting Yogyakarta and Central Java on the 27th May.

I went to Yogyakarta and Central Java at the day the earthquake happened and stayed there for five days and as always happened in cases of natural disaster, you only get to realize how terrible the damage was until you actually see it with your own eyes. I am informed that you have a short visit to Yogyakarta earlier today and I think, you could see not just the degree of the destruction, but also, I hope the tremendous will of the victim to move on and to rebuild their homes and their lives.
After I delivered my speech, I would like to hear from you, your observation, your comment, your viewed, and your suggestion to me and to the Indonesian Government on how should we conduct rehabilitation and reconstruction in Yogyakarta, and in Klaten, after the earthquake.

I am always believed that the greatest force of nature is the human spirit, and as our experience with the Aceh tsunami has shown, the human spirit is much stronger and the most destructive natural disaster. There is plenty of hope among the victims in the Yogyakarta and Central Java that beyond whole, the victims need a helping hand. The Indonesian Government is committed to do our part and allocate the necessary resources to help the victims recover quickly.

Here is where I thank you for your assistance in helping us pull together the critically important “Damage and Lost Assessment” under a tight time line. Coordinating Minister Boediono reported to me that Bappenas, local government in Yogyakarta and Central Java and our international partner have completed the Preliminary Damage and Lost Assessment of the earthquake. And I understand that it was discussed quite thoroughly at your meeting yesterday.

We look forward to hearing your input and cooperate in our effort to rebuild Yogyakarta and Central Java after the quake. I know that the lesson learned from the reconstruction and rehabilitation of Aceh and Nias would help us in formulating a better plan and coordination in our effort to rebuild Yogyakarta and Central Java.

Excellencies,
Ladies and Gentlemen,
Yesterday’s meeting was the 2nd Indonesia led the CGI Meeting. This is very important to us since we want to regularly update you on the progress, priorities and challenges of Indonesia’s economic, social, political, security and legal reform during my administration. With this background, with expect that as partners we will work together to ensure that our decision on the loan programs and projects match the economic and social need of Indonesia.

Indonesia’s economy performed quite well in 2005 despite various obstacle to economic performance and the threat to global conditions posed by high oil prices. Our economic growth in 2005, as you know, reach 5.6%, the highest since the crisis in 1998. Meanwhile, inflation this year has been decreasing steadily after reaching an alarming rate late last year, while Rupiah is also gradually stabilizing. Up and down of the Rupiah and also Indonesia Composite Index, but for me, we do hope it will reach a proper value both for the currency and Jakarta Composite Index.

However, we want to move to even higher growth in the medium term, especially to create jobs and reduce poverty. I had to say again and again that our challenge is, at the end, to reduce poverty and to create job. This will require changing investment sentiments and improve international confidence toward the economy. To address this, I have issued reform packages in investment and infrastructure, so that people could witness our seriousness in undertaking structural reform in all sectors of the economy.

This approach is an integral part of our effort to promote prosperity in Indonesia. That is, by implementing what I would call the triple track strategy. The first track is to achieve sustainable higher economic growth through a combination of strong exports and increased investments, both domestic and foreign. The second track is to stimulate the performance of the real sectors, to create employment. And the third track is to promote the development of the rural economy and agriculture to alleviate poverty.

As you know Ladies and Gentlemen that 70% of our poor people are living in the country side, are working in the agriculture sector, around 40 millions. And another 20 millions of the near poor, they are mostly living in the country side and in the agriculture sector. If we could improve, if we could revitalize the agriculture sector, and rural economic development, I believe very strongly in the years to come we can reduce significantly the number of the poor people by stimulating our agriculture and rural economic development.

I know economic plans generally have pros and corns. For my part, I would like to think that my economic vision is actually based on the triple track strategy has three pro’s, pro-growth, pro-employment and pro-poor. I had to connect growth with the number of poverty reduction and job creation.

Our challenge is to see to it that the macro-economic stability that has been restored by the new economic team can be translated into greater job creation. We still see many short coming in the real sector. The economic recovery has not been accompanied by a sufficient increase in job opportunities. This is a key challenge for the next few years, namely how to accelerate sustainable economic growth by consolidating micro-reform, while maintaining macro-economic stabilization.

If we remain on track with the triple track strategy, we will be able to meet the economic target set by my government immediately upon assuming office.

Economic growth can only be accelerated if we increase productivity in every sector of the economy. And such an increase in productivity will only take place if macro-economy reforms are continued and synchronized with various reforms at the micro level. You can be assured that my government is actively persuing various reforms to improve investment climate, to ensure flexibility of the labor market and to combat corruption in order to reduce high cost economy. You all witness our struggle, the dynamic of the situation in conducting reform, labor reform for example, and other instrument. But I will assure we will do our battle in continuing our reform in building better climate for investment and other economic cooperation in Indonesia.

My government is also committed to advance legal reforms, fight smuggling and combating terrorism. There is a question about the release of Abu Bakar Ba’asyir yesterday, which is overly connected to our commitment to combat terrorism.

Ladies and Gentlemen,
Abu Bakar Ba’asyir has been prostituted, has been put into trialed, has been punished and based on the legal system, he’s to be released after he completed the punishment. What’s that mean that our national commitment … in fighting terrorism is measured by the released of Abu Bakar Ba’asyir, different issue. You know, well, you are also monitoring our expert, here in Indonesia, to watch out the police, to watch out the intelligent agency, to watch out all the agencies that are tasked to prevent and to combat terrorism. We have tempted to that many provocateurs of the terrorism fight here in Indonesia.

So in this fine occasion I would like to show you all that Indonesia is fully committed to continuing at done by other countries in combating terrorism and our cooperation with other countries, bilateral cooperation, for example with Malaysia, with Thailand, with Philippines also to be continued and also cooperation with other countries. All these efforts are aimed at ensuring the security and certainty of investment in Indonesia.

Finally let me say this to you, Indonesia is on track. I believe very strongly that we are on track. I do my best to manage this reform, the democratization and the strengthen to the better Indonesia. We have had very difficult challenges recently, raising oil prices, weakening Rupiah, a deadly tsunami, the earthquake, the haze, avian flu, terrorist attack.

The day after tomorrow I will lead parade that should be held in Palembang, South Sumatera, I will attend the parade that we will do our best to prevent, to deal with the haze problem in Sumatera and in West Kalimantan. I do want that this year, the forum of the heat can be reduced. Indonesia has to export many commodities to many countries but not haze. So, this my obligation, my task, so we do our best, Ladies and Gentlemen, to manage this issue, and hopefully that Sumatera dan Kalimantan will not export heat again to our neighboring country.

People has asked me, how I would label the Indonesian democracy. Well, given what we have gone through, I would label Indonesia a tough democracy, a democracy that become even more resilient as we deal with continuing hardship and great challenges. Democracy after all, in my view, must be living together with rule of law and …. Rule of law and … are also in the making in Indonesia.

Why we continuing our effort in conducting democratization, our challenge, our task is also to build legal certainty, to build good legal framework and to assure that rule of law is obeyed, is implemented well, in tandem with …. In my believe, Indonesia can continue its democratization by built in three pillars of democracy, freedom, rule of law and tolerance. I do hope that we will have a better situation in our nationalized, in our democracy.

At the end of the road, I am convinced Indonesia will emerge a stronger, better and more united nation. Mr. Boediono had told me the outcome of the yesterday’s CGI meeting, I have to be thankful for that and I really hoping that it could coordinated better in implementing what we have agreed during the CGI meeting yesterday. And I can only thank you that all of you are actively working and partnering with us to make that hope a reality.

Excellencies Ladies and Gentlemen,
I would like to hear from you now, again your comment, your views, not only related to the quake that happening in Yogykarta and in Klaten, but could be related to other aspect, especially in economic development, in our cooperation in the field of economy, social, legal, and probably other aspects. So feel be free to deliver to point out your comment.

I thank you very much.

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