Tuesday, May 27, 2014

Prabowo Subianto-Hatta Rajasa

Prabowo has spoken about the targeted fuel subsidy, to ensure that even if there are still subsidies, they should be targeted to those who really need it.

Given that Indonesian fossil fuel reserves will be depleted in a few years time, Prabowo would like to see renewable and other alternative energy such as geothermal, hydropower and biofuel be developed more vigorously. He proposed that huge areas that have suffered massive deforestation should be developed for biofuel development.

Prabowo proposing to increase the budget for agriculture to 10 percent of the total from current 3 percent.

The manifesto rejects privatization of state-owned enterprises, reject trade liberalization and is in favor of more protection in trade policies.

source: Prabowo speech in the S. Rajaratnam School of International Studies in Singapore in April 2012, page 6,
  • 26 May 2014
  • The Jakarta Post

The Jokowi-Kalla platform

The Jokowi-Kalla plan to open 1 million hectares of new rice fields outside Java and build new irrigation networks for 3 million ha of rice fields between 2014 and 2019.


Their plan to increase research and development in agriculture   because the key to agricultural productivity is high-yield seeds that can be developed only through research.

In the energy sector, the pair’s policies of prioritizing the use of natural gas and coal for electric power and strengthening incentives, legal certainty and regulatory body in the petroleum industry.

The promotion of gas utilization through the building of more pipelines   with the operation of two floating storage and regasification units (FSRU) north off West Java and in Lampung, respectively, and the third FSRU in Arun, next year. FSRUs enable the shipment of liquified natural gas (LNG) from Papua and Bontang, East Kalimantan, and even LNG imports from other countries to users in Java and Sumatra.

The Jokowi-Kalla plan to build 2,000 kilometers of roads, 10 airports, 10 ports and 5,000 traditional markets within the next five years. This addresses one of the most pressing problems eroding Indonesia’s economic competitiveness: poor infrastructure. Inadequate infrastructure has hindered connectivity within the country and has made Indonesian logistics costs among the highest in ASEAN.


The plan to develop 10 new industrial estates complete with low-cost housing for workers will accelerate new investment in the manufacturing sector. Developed industrial estates will make Indonesia more attractive to investors often frustrated with the poor access to ports and the arduous, punitively costly process of land acquisition. Expediting the titling of 9 million ha of farmland could be the spark that triggers long awaited land reform across the country.

source: The Jarkarta Post 26 May 2014 page 6.