Comparison of cooperative economy
in Indonesia with
other countries
Indonesia Face the Economic Strategy peek China-India
China and India are two countries
that have grown
most rapidly growing
economies in the world
and increasingly important
role in the global economy.
The ability of capital and labor that allows China to build large manufacturing industries and infrastructure that
great anyway. As a result, the Bamboo Curtain
country to dominate the world with
exports of manufactured goods to the rest of the world. Meanwhile, India seized
the attention of being able to develop
a science-based business-class world, such as software,
information technology services, and
pharmacy and supply
of skilled human resources.
In the midst of the global crisis,
the country's second highest growth in the world
economy while the European countries, the United States, and several Asian countries experienced negative growth.
China's economy increasingly meraksasa
to penetrate the
country's foreign exchange reserves of 2.27 trillion U.S. dollars
by the end of September 2009. Fact that the country's
economic strength to overtake developed
countries, such as Britain,
France, and Italy.
India, as a newly industrialized country that is eager to transform
the economy, now has reserves of about 200 billion
U.S. dollars. Compare the economic reserves
of 72.5 billion U.S.
dollars, and the
UK amounted to 71.1 billion U.S. dollars.
Peneliti
Lembaga Manajemen Fakultas Ekonomi Indonesia Nugroho Purwantoro mengatakan,
China dan India menjelma sebagai magnet terkuat dalam menarik investasi,
menciptakan perusahaan-perusahaan lokal terkemuka, sekaligus menjadi pemain di
pasar internasional. Menurut Nugroho, meskipun sama-sama terus melakukan
transformasi ekonomi, namun pendekatan yang digunakan China dan India cenderung
berbeda. Chinese
government intervention
in the economy bigger than India. China invested
heavily in physical infrastructure, on the contrary since the mid-1980s the
Indian government intervention in
reducing the business world. "In terms of investment, China enthusiastically
accept foreign investment
while India tend
to be suspicious of foreign
investment so that economic growth is
driven domestic demand.
If China successfully dominate
world exports of manufactured
goods, and machinery production, India-with
the information technology revolution initiated since
1999 - now the production base of software and information technology products
for the U.S. market,
Europe, and Asia
Debate about whether a company
should focus on China or India markets especially after the country's second
trade partner (bilateral) trade value reached 225 billion dollars, equivalent
to the value of trade between China and the U.S. in 2006. So what is the impact
of the strengthening economy two countries on the Indonesian economy? How the
Indonesian government and business strategies dealing with China and India?
With Chinese, Indonesian non-oil
export trade balance deficit, meaning that Indonesia imports more than it
exports to China. Total trade between Indonesia and China during May 2009,
reaching 9.2 billion dollars. Indonesian exports to China of 4.3 billion
dollars while imports from China reached 4.9 billion U.S. dollars. Meanwhile,
Indonesia's trade with India is currently listed with a total trade surplus of
6.5 billion U.S. dollars.
advantage
of the potential
The Minister of Trade Mari Elka Pangestu said Indonesia should take advantage of the market potential of China and India are very
large with a supply-based
product manufacturing. "Utilizing the domestic market of China and
India with the export-based
manufacturing products, is expected to drive Indonesia's trade balance
with the two countries," she
said.
During Indonesia's exports to China
and India are still based on natural resources, such as gas, coal, steel
products, rubber, aluminum, and other auxiliary raw materials. With the huge
market potential in both countries, Indonesia is expected to increase the
opportunities to supply the products of intermediate goods, as well as
retaining the natural resource-based exports.
Besides having a large population or
the top three in the
world, China, India, and Indonesia is also a country with the largest economy
in the world during
the global crisis is still ongoing. According to China's economic growth in 2009 is estimated at eight per cent, India
this year expected to reach 6.5 percent,
while Indonesia's economy is expected to pass six
percent in 2011 and
2012.
Mari argues, Indonesia at least
define three strategies for coping with China and India, the two countries make
it as a market and investment opportunities, both competing in the economy, and
all three synergy. Strategic advantage to be gained from the existing business
Indonesia China and India, which is on the scale of the business, the strength
of mutual support, knowledge transfer, and reduce risk.
Mari believe, Indonesia is likely
to compete with China and India because
Indonesia has natural resources
and human resource
potential to be developed. According to the Standard Chartered Bank
report titled "Indonesia,
the rise of Asian Sources of Economic Growth", three categories of countries
capable of winning business
transformation, which has the
financial resources, energy resources
and commodities, and
is able to adapt and
change.
Senior Economist acknowledges
StanChart Indonesian Ichsan, Indonesia does not have the financial resources
sufficient, so that it becomes a challenge how to attract foreign investment to
cultivate economic potential. Could be, many people doubt that Indonesia can
capture and process the economic potential investors. However, political
stability, improving the business climate, and the seriousness of combating
corruption is expected to improve investor perceptions towards Indonesia.
Improving the business climate in the country is
absolutely necessary, in line with
the development of Southeast Asia that encourage inter-regional trade flows and attract inward investment.
In terms of scale economies, Indonesia
is quite large because it has a population of 228 million people or a country with
the fourth largest population in the world after China, India, and the United
States. For that Indonesia should take advantage of the sector is not owned by the
two countries, namely the abundant natural resources in the economic and creative
fields, as well as the advantages of Indonesian tourism sector.
At least, Chinese tourists traveling
overseas each year to reach 25 million people. This
potential can be
tilled to visit
Indonesia.
