Country Report Repubilc of Indonesia (Ministry of Public Works)

1. Country Report Repubilc of Indonesia (Ministry of Public Works) June 17, 2009 by: Bimo Adi Nursanthyasto Sustainable Rural Development Mekong Institute - TICA 2009

2. Introduction Population : 245,5 million Capital : Jakarta (Population: 13,1 million) Area : 1.922.570 square kilometers Language : Bahasa Indonesia Religion : Muslim, Protestant, Chatolic, Buddist, Hindu Currency : Indonesian Rupiah GDP : US $ 3.600 Indonesia has 17.000 islands extending 3.200 mile (east to west). The larger islands are Java, Sumatera, Kalimantan, Sulawesi dan Papua.

4. The Income of Indonesian Population

5. Mid-Term National Development Plan 2004 - 2009 The economic growth is targeted to increase from 5.5 % in year 2005 to become 7.6 % in year 2009 with an average of annual growth of 6.6 %. To achieve this target, government has committed to speed up infrastructure development which is believed to contribute the economic growth significantly with elasticity to the output (PDB) between 0.07 % and 0.44 %.

6. Ministry of Public Works The Duty and Function : Road infrastructure, providing for goods and people transportation and constructing spatial structure of regions; Water resources infrastructure; Providing for stockpile and distribution of bulk water as well as for prevention of water destruction; Human settlements infrastructure, including housing and neighborhood settlements infrastructure to support environmental quality and community livelihood, including local transportation services, drinking water, and environmental sanitation, consists of solid waste management, domestic sewerage, and drainage for flood prevention

7. The Priority of National Development associated with The Duty of Ministry of Public Works Poverty Alleviation; Increase of Job Opportunity; Investment and Export; Revitalization of Agriculture, Fishery, Forestry and Rural Areas; Law Enforcement; Corruption Alleviation and Bureaucrat Reform; Increase of Safety, Stabilization and Conflict Solution; Mitigation and Prevention of Natural Disasters; Infrastructure Development; and Reduce Disparity Among Regions. Note: In increasing job opportunities, investment and exports, the target is to increase interaction of economic activities and investment within one system of economic development. The role of infrastructure in this program is to increase the economic activities by extending job opportunities for community and to increase industrial growth which is strategic for national economy. With regard to revitalization of agriculture, fishery, forestry, and rural areas, the role of public works’ infrastructure needs to be increased, particularly in rural areas for supporting safety food and agropolitan area development.

8. The Role of Agriculture in Indonesia Economic Development • providing job opportunity for the majority of labor force; • producing foods for the nation; • raw material producer for industrial sector; • strengthening food security and rural development. • Note: • Normally, agriculture activities are done in rural area, where most of Indonesian population stays.

9. The Problems to Achieving A Self-Reliant Rice Production • Infertile soil; • Pest attack; • The low production due to crop failure; • High production cost; • The farmers perception of local rice varieties; • The government policy against the use of local varieties and organic system of production; • Funding problems.

10. The National Community Empowerment Program (Program NasionalPemberdayaanMasyarakat) The PNPM consolidates different community-based programs of various ministries and institutionalizes Indonesia’s experience in bottom-up planning and decision-making into a single community-based poverty reduction program.

11. THANK YOU Terima Kasih