The white paper is a strategic document prepared by Kadin as a guide and policy recommendation to achieve the eight percent economic growth targeted by President Prabowo Subianto's administration, according to Kadin chairperson Arsjad Rasjid.
"The national business stakeholders are optimistic about the economic growth target; the key is collaboration and alignment between the government and the business world, where Kadin Indonesia plays a role as an enabler that bridges both parties," he said in a statement released on Tuesday.
The white paper explains current challenges/issues in detail as well as the main initiatives that can solve these problems, so the document is relevant to Indonesia's situation for the next five years.
According to Rasjid, the white paper is a guide for synergy between the business world and the government to build an inclusive and sustainable economy.
The document translates President Prabowo's Asta Cita vision into concrete steps and provides a more detailed focus on key growth sectors, such as digitalization, industry, energy, as well as micro, small, and medium enterprises (MSMEs).
Kadin has formulated four strategic pillars — increasing resilience, promoting welfare, strengthening inclusiveness, and advancing sustainability — which are outlined in key initiatives to guide 8 percent growth.
These key initiatives have the potential to increase the gross domestic product (GDP) by 7 percent to 8 percent per year. Kadin has also made GDP projections based on a cumulative addition of USD450 billion to USD500 billion from all key initiatives during the 2024–2029 period.
Based on these projections, there are seven top growth themes that have the potential to contribute more than 80 percent of the estimated total GDP impact in 2024–2029.
They are health infrastructure, energy security, MSMEs, manufacturing, green and sustainable businesses, and food security.
Kadin's white paper was compiled in collaboration with eight partners: 5P Global Movement, Boston Consulting Group, DayaLima, Hukum Online, Indonesian Business Council, Institute for Development of Economics and Finance, McKinsey & Company, and Gadjah Mada University.
The document also contains inputs collected through a survey of 1,618 central and regional Kadin administrators and 48 focus group discussions involving more than 180 central Kadin administrators, more than 125 extraordinary Kadin members, and 24 provincial Kadin offices.
Director of policy and program at the Indonesian Business Council, Prayoga Wiradisuria, said that the main theme of the white paper concerns the effort to build the largest green business development center in the world.
The document underscores the need for carbon trading to fund decarbonization as a proposed strategic growth theme that is in line with the Council's vision.
"This initiative aims to support inclusive growth and sustainable renewable energy for a greener future for Indonesia," Wiradisuria added.
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Translator: Maria Cicilia Galuh Prayudhia, Yashinta Difa
Editor: Rahmad Nasution
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