Speech at The Informal Working Lunch

SPEECH BY THE PRESIDENT OF THE REPUBLIC OF INDONESIA
AT THE INFORMAL WORKING LUNCH
SHANGRI-LA HOTEL, SINGAPORE
6 AUGUST 2006


Bismillahirrahmanirrahim,
Assalamu’alaikum warahmatullahi wabarakatuh,

Minister Lee, Minister Marie Pangestu, Ministers from Indonesian Cabinet, Members of The Indonesian Chambers and Industry, Chambers of Commerce and Industry, The distinguished Leaders from Singapore,

Ladies and Gentlemen,
Before moving on to the Q and A, I would like to quiet briefly, give you an update on the Indonesian Economic development.
As a close neighbours, close friends and close partners, I believe where is strongly that you are following very well, you are ongoing development in Indonesia.

Nevertheless, I would like to share with you, the development of the Indonesian economy, our challenge, our main issues and our achievements in continuing our reform on economic reconstruction after the crisis.

Despite experiencing external shock in the past two years, from the mortality of growth, crash worldwide and serious of disaster of tsunami to tsunami accrossed the regions, Indonesia has managed actually our effort in stimulating our economic growth. 2004 we reached 5.1% last year, … for us we could achieved 5.6% and we expect this year to raise growth to 6%.

The macro economic condition is moving well, better than before. Inflation will go down this year, I believe very strongly on that. Our research is strong, the strongest one during our history and other macro economic conditions. Our challenge is one of course to stimulate our growth continously to create more jobs, grow investments and exports. We have to also generate our real sectors across the regions to against, improve the over condition of our society, economically and socially. We also conduct a very intensive campaign in revitalizing our agriculture and rural economic development to reduce poverty.

We do hope by launching that kind of economic strategy, our economy will be moving ahead to reach a condition that we could improve the welfare of the people across the country. Our mission is now continuing a building better climate for doing bussiness in and with Indonesia, from political stability, to law and order, legal substanty, sound spec policy, custom policy, the dissyncronization of center and local government regulations, labour situasion and others. That my tasks and my obligations in order to against having a better investment and bussiness climate in Indonesia.

While doing that we will continue to conduct justice sector reform, birocratic reform, building good governance and fighting corruption seriously, very seriously. I do hope that Indonesian economy will be more deficits, there will be a cut in at the cost of doing bussiness in Indonesia. We do hope we have a faster, a cheaper and better service for our partners and conducting investment and other bussiness activities in Indonesia.

But of course I have to be frank with you all that reform is not only about changing the structure, about revising law and regulations but it also a caption with the mindset, the behavior and the culture of doing bussiness of running the government and other activities.

So while we are working really hard day by day, night after night for fixing many things to putting back our house in order to improving many things, of course we have to follow the road for reform … sometime that is not easy, just like changing everything over night, but trust us, trust Indonesia that we are very serious in improving many things. And talking about opportunities, we over several opportunities to our partners here in Singapore from infrastructure development, empower in top priority, toll road system, housing and other infrastructure projects.

We are also now launching very intensive programme on biofuel development across the country, welcome for cooperating with us in the development of biofuel, tied energy. The objective is quite clear, Indonesia want to create more jobs at the country side, Indonesia want to generate real economy for our people. And by doing that also we could improve the purchasing power people, if 220 million Indonesian people are having significant value of their purchasing power, I believe that the magnitude the size of the Indonesian economy will be growing.

And with that kind with the size economy, there will be more opportunities that we could take together in further developing Indonesian economic. That my councious quite simple but of course on the one in I have to stimulate our growth, hoping that with growth we can create jobs to reduce poverty, based on the tackle down effect theory that understanding the histories as developing countries including Indonesia. I have to develop also, well-targetted government policy to address directly, the problem of poverty, the problem unemployment, the problem of welfare ness in our regions.

We are combined and chossed to cut the strategy hoping that everything is moving ahead for the better. That thing that I would like to add you in this introduction and I give again for Mr. Lee to manage this Q and A.


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Bureau for Press and Media Affairs
The Presidential Household