Stabilizing and Decentralizing the Growth through Agro-industrial Development

Abstract

The Indonesia's recent economic growth, 2000-2010, was very remarkable considering the fact that during the same period the global economy was generally characterized by stagnant to negative growth. However, such a remarkable growth were being criticized by many as having several weaknesses, covering: (i) Indonesia's economy is relatively unstable, (ii) growth is centralized in Jakarta only, (iii) Indonesia follows the Asia Tiger's export-driven growth model, (iv) main economic driver is resources, and (v) growth has come largely from an expanding workforce. However, agroindustriers believes that such criticisms teachs this country with extremely meaningful lessons for better policy reorientation for national economic development of this Republic.Based on the agroindustriers’ perspective, unstable and centralized economic growth of this country is clearly direct consequences of political-economic policy choice in national development in favor of import-based industries, IBI, by overall protective measures covering monetary, fiscal, and trade policies in particular, ABI.It is the challenge for agroindustriers to take the opportunity promoted by President Jokowi through his cabinet, Working Cabinet, maintreaming on food sovereignty and agroindustrial development i.e. agro-based industries or ABI, instead of IBI. Stabilizing and decentralizing the Indonesia's growth would only be possible, if and only if, this country immediately switchs from IBI to ABI. Related value added and locality would multiply the value of any human and natural resources.