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.

Bank Indonesia (BI) rate of Indonesia's economic weakness has a cause, even since the time of the new order. It is the imbalance between the internal and external sides of the country's economy.

Analysis

1.  What the weakness of Indonesia's economic structure?

Answer: Because 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.

2.  Who receives subsidized oil (BBM)?

Answer: To the people who actually are not even on target. Current budget fuel subsidy enjoyed by the rich instead.

3.  Based on the above text, where the country of economy occurred weakness in Asian Countries?

Answer: In Indonesia

4.  When is occurrence weakness of economy in Indonesia?

Answer: Since the time of order

5.  Why Indonesian economy that is actually very promising for both domestic and foreign investors?

Answer: Promising Indonesian economy is evidenced by incoming investment, private consumption, and vibrant business world.

6.  How can Indonesia experienced economic weakness?

Answer: Because 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.

Comment:
During this time, the people we always focus on the primary sector, mining, and industry. However, this sector is still always require imported raw materials. And there must be local entrepreneurs who enter the business of raw materials, auxiliary materials, or materials can be used in particular capital in the domestic industry. Thus, this will reduce the industry's dependence on imports. And the government still considered late in regulating fuel oil (BBM). The solution the government should immediately resolve the sources of weakness.



Source:
http://www.bubblews.com/news/743685-weaknesses-of-indonesian-economic
http://bisniskeuangan.kompas.com/read/2012/11/28/12153262/Ini.Kelemahan.Ekonomi.Indonesia.sejak.Orde.Baru



Kenanda Queenta Mulya
14213795
1EA02