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Kadin Releases White Paper To Support 8% Economic Growth
Thursday, 28 Nov 2024
The Indonesian Chamber of Commerce and Industry (Kadin) is set to launch a White Paper outlining strategies for economic development from 2024 to 2029. This strategic document is created by Kadin Indonesia to guide and recommend policies aimed at achieving an 8% economic growth target set by President Prabowo Subianto.
Kadin Indonesia's Chairman, Arsjad Rasjid, stated, "Kadin Indonesia remains committed as a strategic partner to the government in building the economy over the next five years. The national business sector is optimistic about the growth target, and the key is collaboration and alignment between the government and businesses, with Kadin Indonesia acting as a bridge between both sides."
"The White Paper details current challenges and issues, along with key initiatives that can address these problems, making it relevant to Indonesia's situation for the next five years," Arsjad explained.
According to Arsjad, this White Paper serves as a guide for synergy between the business world and the government to create an inclusive and sustainable economy. It translates President Prabowo's vision into concrete steps and focuses on key growth sectors such as digitalization, industry, energy, and small and medium enterprises (SMEs).
"Implementing various economic programs, like industrial development and digitalization, requires a more concrete approach. This White Paper provides a clear implementation guide," Arsjad added.
In this White Paper, Kadin Indonesia outlines four strategic pillars: enhancing resilience, promoting welfare, strengthening inclusivity, and advancing sustainability, which are broken down into key initiatives to achieve the 8% economic growth target. These initiatives have the potential to increase GDP by 7-8% annually.
Kadin has projected GDP growth based on an additional cumulative investment of US$450-500 billion from key initiatives between 2024 and 2029. This projection identifies seven main growth themes that could contribute over 80% of the total estimated GDP impact during this period. The seven priorities include health infrastructure, energy resilience, small and medium enterprises (SMEs), manufacturing, green and sustainable business, and food security.
The White Paper was created in collaboration with eight partners: 5P Global Movement, Boston Consulting Group, DayaLima, Hukum Online, Indonesian Business Council, Institute for Development of Economics and Finance (INDEF), McKinsey & Company, and Universitas Gadjah Mada.
This document gathers insights from a survey involving 1,618 Kadin leaders from central and regional offices, along with 48 Focus Group Discussions (FGDs) that included over 180 central Kadin leaders, more than 125 Extraordinary Members of Kadin, and 24 provincial Kadin representatives.
Prayoga Wiradisturi, Director of Policy and Program at the Indonesian Business Council, highlighted that the themes in the White Paper focus on establishing the world's largest green business development center. This aligns with IBC's strategic growth proposal, which includes opening a carbon market to fund decarbonization efforts. The establishment of a Carbon Market Knowledge Center (CMKC) is a crucial step to achieve this goal. “This initiative aims to support inclusive growth and the sustainability of renewable energy for a greener future in Indonesia,” said Prayoga.
William Sabandar, Chairperson of 5P Global Movement Indonesia, emphasized that strengthening inclusivity is vital for supporting sustainable economic growth through various approaches, including social, political, governance, economic, ecological sustainability, cultural, and security aspects.
