Minister Sees Indonesia as ‘Asian Tiger,’ Laments Infrastructure Shortcomings
Faisal Maliki Baskoro. The Jakarta Globe, Jakarta - 15/12/2011
As the region’s largest economy, Indonesia has the potential to become a “new Southeast Asian tiger,” thanks to its natural and human resources, State Enterprises Minister Dahlan Iskan said on Thursday.However, that potential has not been realized as inadequate infrastructure, an unwieldy bureaucracy and insufficient involvement by private corporations have inhibited growth, he said.“This poses a big dilemma for me as state enterprises minister,’’ Dahlan said. “On one hand, I have to boost the performance of state enterprises, but that may curb the opportunities for private companies to grow. So state enterprise and private corporations should cooperate in order to become a new Southeast Asian tiger.”Dahlan was president director of state utility Perusahaan Listrik Negara until October, when he was appointed to the cabinet. He was speaking at the Mandiri Economic Forum in Jakarta, organized by state lender Bank Mandiri.Dahlan said improving the nation’s infrastructure was crucial, and that private companies should play a more active role in infrastructure projects such as power generation, toll roads, seaports and airports.The call comes a little more than a month after Dahlan announced that his ministry wanted to trim or consolidate 12 percent of state-owned companies early next year in an effort to improve public sector efficiency.There are currently 142 state-owned enterprises, a number the minister wants reduced to at least 126 by the end of the first quarter next year.For his part, the president director of Bank Mandiri, Zulkifli Zaini, said the Jakarta-based lender would play a greater role in regional banking in the coming years.“Bank Mandiri wants to become [one of] the top five biggest banks by value in the region by 2013 and among the top three banks by 2020,’’ said Zulkifli, who heads the country’s largest lender by assets.Speaking at the same forum, Suryo Bambang Sulisto, chairman of the country’s Chamber of Commerce and Industry (Kadin), said Indonesia should do everything it could to encourage more young entrepreneurs.Human capital will ultimately be responsible for the nation achieving that “Asean tiger” status, he said.“Asia should not only count on India and China as the economic powers. It is now time for Indonesia to become an economic power in the region,” he said. “It is the job of young people and young entrepreneurs.”