http://www.theaustralian.com.au/news/world/indonesia-gearing-up-for-growth/story-e6frg6ux-1226019981580

Indonesia gearing up for growth 
Paul Kelly, Editor-at-large 
From: The Australian 
March 12, 2011 12:00AM 
INDONESIA'S Vice-President Boediono has come to Australia with a message of 
optimism in Indonesia's economic performance but seeking new levels of 
Australian assistance for his nation's development. 

"Indonesia will be able to reach economic growth of between 7 and 8 per cent," 
he tells Focus.

"This is a realistic target over the next decade or so. We cannot match either 
China or India in terms of the economic path because we have different economic 
and social conditions."

While cautious in his confidence, Boediono, running mate to President Susilo 
Bambang Yudhoyono at the 2009 election, sketches a picture of Indonesia moving 
to a higher plateau in Asian economic performance.

He nominates four factors that underpin Indonesia's stronger outlook - a 
"demographic dividend" from a large domestic market of 240 million people, a 
new fiscal culture that spurns deficits and debt, strong natural resources and 
a deepening of Indonesia as a democratic polity. The prospect of Indonesia 
moving towards higher, sustainable economic growth has the potential to recast 
Australian attitudes towards its northern neighbour. "I think we will have to 
find our own way," says Boediono when asked about where Indonesia fits into the 
Asian growth model.

He says that in technical terms Indonesia's growth should be higher, but it has 
to manage its constraints on growth, notably an infrastructure deficit and the 
need to improve skills, education and training of the workforce.

He says "the most obvious way" Australia can partner Indonesia is assisting on 
the skills front. "Australia can be a partner, perhaps a big partner for us," 
he says. "I don't know if just sending Indonesian students to Australia will be 
enough."

An economic technocrat, Boediono is visiting Perth, Canberra and Sydney with a 
message not just about Indonesia but the wider region. "Asia has to move 
towards a single market," he says. It is a long-range yet compelling vision.

Hopes for deeper bilateral relations hinge around the negotiation for a 
Comprehensive Economic Partnership Agreement launched by Julia Gillard and 
Yudhoyono last November. But the current backdrop to relations is the near 
collapse of Indonesian language studies at Australian universities.

"Direct contact is the only way," Boediono says of the strategy for 
people-to-people relations.

"You have to see the body language. It's not enough to communicate through the 
electronic media."

But he warns the language issue cannot be forced.


[Non-text portions of this message have been removed]



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