"If the demand side is monetary and fiscal, the supply side is building infrastructure, human resources, and land," Nasution remarked at a presentation of the four-year work of the Widodo-Kalla Government at the Ministry of State Secretariat, Jakarta, Tuesday.
The former Bank Indonesia governor explained that the development strategy, ensuring a balance between the demand and supply side, will facilitate economic progress manifested through structural transformation.
Structural transformation is often interpreted as a transition from the traditional sector to the modern system. Such a transitional process requires economic development, especially from the supply side.
"So balanced, we actually have at one point to be ready to carry out economic transformation without having to move agriculture to industry. Agricultural activities are transformed into more commercial, as the infrastructure is there," Nasution remarked.
Besides through infrastructure, development to support the supply side of the economy is also carried out by developing vocational education and agrarian reform.
Vocational education is planned to begin full implementation in 2019. Preparations made include curriculum changes, teacher preparation, and teaching and learning methods.
"Later, you will no longer just rely on a diploma, as SMK graduates earn a diploma but do not necessarily get a job. What should be done is that competency standards must be applied each year. If the business is to build a house, then there is competence to make foundations and roofs, among others," Nasution noted.
Speaking in connection with agrarian reform, he affirmed that the government had begun distributing land certificates that will later be followed by social forestry and land redistribution.
Reporting by Calvin Basuki
Editing by Eliswan, Yoseph Hariyadi
Reporter: antara
Editor: Heru Purwanto
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