The national economy based on democracy and a fair market economy must be strengthened. Therefore, the government needs to issue policies based on justice so that people get what they need (equity) to improve their quality of life, not just equality or equal treatment.
Economic growth must be able to touch and be felt by all Indonesian people. "Today I announce the Economic Equality Policy (KPE) which is based on three pillars, namely land, opportunity and human resources," said President Joko Widodo when launching the Economic Equality Policy (KPE) and Agrarian Reform in Boyolali, Friday (21/4).
For this reason, the government will focus on 4 (four) Quick Wins programs in the KPE that have the greatest impact on reducing inequality in society. This policy emphasizes Agrarian Reform including legalization of transmigration land; vocational education and training; housing for the urban poor; and modern retail and traditional markets.
KPE has 3 (three) main pillars, including Land, Opportunity, and Human Resource Capacity (HR). This is intended so that government policies can be harmonized into a coherent and effective policy design in reducing inequality based on economic equality.
Of the three main pillars, there are 10 areas that are considered to be sources of inequality in society. The First Pillar based on land will include agrarian reform and social forestry; agriculture in relation to the issue of landless farmers; plantations related to low productivity and added value of commodities; affordable housing for the urban poor; and fishermen and seaweed farmers.
Meanwhile, the second pillar based on opportunities will target tax system issues; manufacturing and information technology; development of retail and traditional markets; and financing with government funds.
The last or third pillar is increasing human resource capacity, targeted to resolve vocational, entrepreneurship and labor market issues.
According to Coordinating Minister for Economic Affairs Darmin Nasution, the KPE was created because Indonesia's current economic profile requires government anticipation to ensure quality economic growth that is also able to reduce inequality in society.
"I am optimistic that national economic growth will continue to increase. For that, we need to design an economic equality policy in order to realize a quality economic-social transformation," added Coordinating Minister Darmin.
Quick Wins for Agrarian Reform, Including Legalization of Transmigration Land
Transmigration land of 220.000 ha and 3.800 ha of Prona are ready to be legalized from a total of 4.5 million ha. Meanwhile, abandoned land of 23.000 ha and 707.000 ha from the release of forest areas are also ready to be redistributed from a total of 4.5 million ha. The Land Objects of Agrarian Reform (TORA) that have been identified are spread across several provinces, such as Banten, West Java, Central Java, Riau, West Kalimantan, West Sumatra, North Sumatra, and Maluku.
Regarding social forestry, the Ministry of Environment and Forestry (KLHK) is ready to distribute access to social forestry management covering an area of 211,522 ha for 48,911 families with a total of 134 permits. The launch is focused on 11 villages with a total area of 15,576 ha for 9,411 families.
In addition, regarding the legalization of transmigration land, Coordinating Minister Darmin said that 342.344 areas of transmigration land (± 220.000 Ha) have been identified that have not been certified. With the following details:
- As many as 66.32% of them already have Land Use Rights (HPL) status, so it is necessary to focus on legalizing this land because the process is faster than others.
- Implementation needs to be prioritized in South Sumatra with 46.091 fields, Riau with 12.767 fields, and East Kalimantan with 5.217 fields.
"I remind you again, the provision of these certificates is not just about distributing land. But the focus on the land that has been given can become productive economic capital to improve the welfare of the community," the President stressed.
Quick Wins Vocational Education and Training
Several vocational and workforce policies are designed to increase human resource capacity, especially to align with industry needs and support government priority programs.
There are 2 (two) policy steps that the government will take. First, by compiling and strengthening the roadmap for vocational education and training. This is done through reclassification of business fields and positions and prioritization of business fields and positions in Indonesia.
Second, with the Job Matching policy between Vocational and Industry. The government will focus on strengthening vocational programs for industries that have strong associations and vocational schemes that have been running for the automotive, tourism and transportation sectors.
Quick Wins Housing for the Urban Poor
The government is also committed to developing housing in urban areas that are well connected to activity centers, economic resources and public transportation for the urban poor.
Three core housing policies, among others: Land availability for affordable housing; Policy on the Implementation of Housing Schemes for MBR (social housing); and, Policy on Strengthening Financing Schemes for the Community (housing financing).
Quick Wins Modern Retail and Traditional Markets
The government has also mapped out several policies to increase the competitiveness of the retail sector and strengthen the synergy between traditional and modern retail.
At the end of his speech, the President explained that the implementation of all these policies could not all be targeted in the short term, but also in the long term.
The government believes that this Economic Equality Policy will not only realize a better national economic transformation, but also is a necessary and sufficient foundation to prepare the Indonesian national economy to escape the middle income trap towards the status of a developed country. (**Public Relations Division of the Coordinating Ministry for the Economy and the Government Communications Team of the Ministry of Communication and Information)
Head of Public Relations: Farah Heliantina / humas.ekon@gmail.com / www.ekon.go.id
twitter: @perekonomianRI
