Acceleration and Expansion of Indonesia Economic Development 2011-2025

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MP3EI ver Eng.pdf
Indonesia requires acceleration and expansion of economic development to support its transformation into a developed country by 2025. In doing so, many millions of people will be lifted out of poverty, and given better access to quality education, employment, higher living standard and medical care. A stronger middle class will also mean that the country and its citizens will have higher purchasing power and the increased ability to compete in the global arena.

The Masterplan for the Acceleration and Expansion of Economic Development of Indonesia (MP3EI) provides the building blocks to transform Indonesia into one of the 10 major economiesin the world by 2025. To achieve this, real economic growth must reach 7 - 9 percent per year, on an ongoing basis. The development of MP3EI can be accomplished if the government and business sector embrace a new way of thinking in doing business. Everyone must take a collective approach toward improving and utilizing the country’s resources, strategic position, and manpower, in order to propel its citizens forward.

The stakeholders, the central government, local governments, state owned enterprises, and private sector must work together productively. The private sector will be given a major and important role in economic development, particularly in investments to increase job opportunities. The government will not only be a regulator, it will also be a facilitator, and catalyst to support this growth. With regard to regulations, the government will amend or remove (debottlenecking) regulations that inhibit the implementation of investments. As a facilitator and catalyst, the government will provide incentives, both fiscal and non fiscal.Implementation of MP3EI will include 8 main programs which consist of 22 (twenty two) main economic activities.

The implementation strategy of MP3EI will integrate 3 main elements:

(1) Developing the regional economic potential in 6 (six) Indonesia Economic Corridors: Sumatra Economic Corridor, Java Economic Corridor, Kalimantan Economic Corridor, Sulawesi Economic Corridor, Bali – Nusa Tenggara Economic Corridor, and Papua – Kepulauan Maluku Economic Corridor;
(2) Strengthening national connectivity locally and internationally;
(3) Strengthening human resource capacity and national science & technology to support the development of main programs in every economic

Implementation of MP3EI is expected to fully support and complement existing development planning documents produced by the government, including Long Term National Development Plan (RPJPN) and Medium Term National Development Plan (RPJMN). The implementation of MP3EI will be coordinated by a Committee chaired by the President of Republic of Indonesia. This committee will be responsible for the coordination, monitoring and evaluation of specific strategies and actions identified in the masterplan.

Table Of Content

Preface from The President of Republic of Indonesia


Historical Breakthrough in the Making of MP3EI

1. The Self-Sufficient,Advanced,Just, and ProsperousIndonesia

A. Preface
B. Acceleration and Expansion ofIndonesia EconomicDevelopment
C. Indonesia’s PositionWithin The Regional andGlobalDynamics
D. Indonesia’s Potential and Challenges
E. Acceleration of Economic Transformation - A New Way of Working (Not Business as Usual)
F. MP3EI-An Integral Part ofNationalDevelopment Planning
G. FrameworkDesign of MP3EI

2. Basic Principles, Prerequisitesfor Success and Main Strategies of MP3EI

A. Basic Principles and Prerequisitesfor Successful Implementation of MP3EI
B. Improving Regional Economic Potential Through TheDevelopment of Six Economic Corridors
C. StrengtheningNational Connectivity
D. StrengtheningHuman Resource andNational Science and Technology Capabilities

3. Indonesia Economic Corridor

A. Posture of Indonesia Economic Corridor
B. Sumatra Economic Corridor
C. Java Economic Corridor
D. Kalimantan Economic Corridor
E. Sulawesi Economic Corridor
F. Bali – Nusa Tenggara Economic Corridor
G. Papua – Kepulauan Maluku Economic Corridor

4. The Implementation andGovernance of MP3EI

A. Implementation Stage
B. Improvement of Regulations and Permits
C. Monitoring and Evaluation