Incumbent Susilo Bambang Yudhoyono (known in Indonesia as ‘SBY’) headed for a landslide win in Indonesia's presidential election becoming the first leader since the fall of Suharto in 1998 to secure a second term in office and this is significant since the shifting power bases become more predictable. With the second term, SBY can up his ante and ratchet up the pace and scope of reform and development. There is great potential in Indonesia as it is one of the world’s largest middle income countries if they catch up in their transformational development.
Although Indonesia is weathering the global economic downturn with 35 million Indonesians still living below the poverty line and half the population still remaining vulnerable to poverty, SBY has to look ahead to push its largely uneducated Indonesians to fit them into the global economy but skilling them appropriately and exporting these human resources will be his challenge. The Middle East and Muslim countries globally will be huge export destinations of such brains and brawns. Apart from its natural resources from petroleum, tin, natural gas, nickel, timber, coal to gold and silver, its manpower is a huge resource by itself.
Singapore, by all accounts, lack what Indonesia has in abundance – land mass, natural resources and human capital. With a stable political framework, cooperation with Indonesia can be in township and manufacturing hubs developments. Singapore’s proximity with Indonesia and closeness of ports will make such triangulation of manufacturing and trade management explosive. Singapore can work with SBY’s government to form manufacturing hubs in certain regions. Such cross border manufacturing and trades will spur employments and lower the overall cost structures of managing manufacturing in Singapore alone. For the least Indonesia is closer to Singapore than China or India.
Indonesia is a land of many possibilities for so long as the political climate remains predictable. SBY is known to be a deliberate, measured perhaps overly cautious leader. With such strong mandate, this is his opportunity to make profound and meaningful impacts both politically and economically. Suharto brought prosperity to Indonesia under different terms. SBY now has his chance to bring prosperity under his term.
Monday, August 3, 2009
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