Economic Development Of Indonesi A Long Term Plan

Economic development in Indonesia began in early 1970. Indonesia had a low income per capita compared with other developing countries such as India, Bangladesh or Nigeria. As one of the poorest country in the world, Indonesia faced many challenges to cater its inhabitants, for example more than half of the population was living in absolute poverty. This condition made Indonesia had a low life expectancy because lack of health infrastructure such as hospital and medical workers. Some regions faced a disease outbreak that caused by poor sanitation accompany by poor nutrient. In education, many adult people did not join in a basic education level, such as primary and secondary school. It made the illiteracy rate higher among workforce age.†¦show more content†¦The budged allocation had a negative influence for other government projects such as road and irrigation ,which is supporting infrastructure(R R Piggott et al. 1993). Moreover, reducing dependency in rice import, governme nt main strategy is to exploitation natural resource that could generate other economic benefit such as employment. Primary sectors were the main driver for Indonesian economies in the first term development. The primary sectors such as minerals, agricultural products, fishery products and forestry resources contribute almost 60 % from the total Indonesian GDP. Industrialisation process in that era had a small contribution not only in the second stage process, such as swan wood into furniture, but also in the first stage, such as timber into swans. The industries contribute only less than 5 % from total GDP. In addition, more than 90 % of export value came from the primary sector and the primary sectors were also provided more than 75 % employment (Calkins et al. 1994). This data could draw the importance of the natural resource in Indonesia for the economic development. This condition gave significant impact on the environment. Massive Investment in agriculture and the introducing new farming technique could increase the prosperity. The farmers were encouraged to adopt the modern farming technique using better varieties and fertilizer along with a huge subsidize. Java Island with high