In Preparation for AEC, President SBY Issues Presidential Instruction concerning Improvement of National Competitiveness

By Alfurkon Setiawan
Date 17 September 2014
Category: News
Read: 16.378 Views

foto_asean_1In connection with Presidential Decree Number 37 of 2014, in efforts to improve national competitiveness, and in preparation for the ASEAN Economic Community (AEC) which will begin in the end of 2015, President Susilo Bambang Yudhoyono (SBY) on 1 September 2014 signed Presidential Instruction Number 6 of 2014 concerning the Improvement of National Competitiveness in Preparation for ASEAN Economic Community.

Through the Presidential Instruction, President SBY instructs the ministers of United Indonesia Cabinet II (KIB II), the Cabinet Secretary, the Attorney General, the Commander-in-Chief of Indonesian National Police (Polri), the Heads of Non-Ministerial State Institutions, Governors, Regents, and Mayors in Indonesia to take necessary steps, in accordance with their respective duties, functions, and authorities, in a coordinated and integrated manner, to improve national competitiveness and to make preparations for ASEAN Economic Community which will begin in 2015.

The improvement of national competitiveness and the preparations for ASEAN Economic Community must be in accordance with the strategies as follows:

1. National Industrial Development which focuses on (a) development of priority industries in order to meet the demand of ASEAN markets, (b) development of industries in order to safeguard domestic markets, (c) development of small and medium industries, (d) development of human resources and research, and (e) application of Indonesia’s National Standard (SNI).

2. Agriculture Development which focuses on efforts to boost direct investment in agriculture sectors and to widen access to markets

3. Development of Maritime Affairs and Fisheries which focuses on (a) reinforcement of institutions and position of maritime affairs and fisheries, (b) improvement of competitiveness in maritime affairs and fisheries, (c) reinforcement of domestic markets, and (d) reinforcement and improvement of export markets

4. Energy Development which focuses on (a) development of electric-power sub-sectors and reduction in use of fossil energy (fuel oil), (b) development of new and renewable energy sub-sectors and energy conservation, and (c) improvement of electricity and energy supply in efforts to compete with countries which have better infrastructures.

In addition, there are still 10 other development sectors covering infrastructure development; national logistic system development; development of banking sectors; investment; micro-, small and medium enterprises; manpower; health; trade; tourism; and entrepreneurship.

In connection with this Presidential Instruction, President SBY gives discretion to the ministers and the heads of non-ministerial state institutions to establish coordination with the Governor of Bank Indonesia (Indonesia’s Central Bank) and the Chairman of the Board of the Financial Service Authority (OJK) Commissioners, provided that their programs are related to the authorities of Bank Indonesia and/or the Financial Service Authority (OJK).

According to this Presidential Instruction, the Coordinating Minister of Economic Affairs is instructed to coordinate the implementation of the strategies mentioned above and report it to the President periodically.

In the performance of his duties, the Coordinating Minister of Economic Affairs is instructed to coordinate with the National Committee for the Preparations for ASEAN Economic Community, pursuant to Presidential Decree Number 37 of 2014.

“This Presidential Instruction is effective since the date of its issuance,” the end of the Presidential Instruction reads. The Presidential Instruction was signed by President SBY on 1 September 2014. (Pusdatin/ES)

Latest News