Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected]

INDONESIA: EMERGING ECONOMY AND POWER IN THE 21ST CENTURY’S WORLD ORDER presentation at the Aarhus University Academic Day 2012 Conference: “NEW BRICKS ON THE BLOCK – SYMPTOMS OF A FUTURE WORLD SOCIETY?” Aarhus University, 19 September 2012

Prof. Dr. Bomer Pasaribu Ambassador of the Republic of to the Kingdom of Denmark and the Republic of Lithuania

1 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected]

62 YEARS INDONESIA-DENMARK BILATERAL RELATION

DENMARK: “KNOWLEDGE>GROWTH>PROSPERITY>WELFARE” (DENMARK 2020)

INDONESIA: “DEMOCRACY; HUMAN RIGHTS; ECONOMY ; ECOLOGY; RULE OF LAW  TOWARDS KNOWLEDGE BASED ECONOMY” (MASTER PLAN 2011-2025) 2 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] INDONESIA: EMERGING ECONOMY AND POWER IN THE 21ST CENTURY’S WORLD ORDER CONTENTS:

I. INTRODUCTION. I.1. INDONESIA AT A GLANCE I.2. INDONESIA: A LESSON LEARNT

II. THE DYNAMIC OF INDONESIA II.1. POLITICAL REFORMS & ROLES II.2. COMPOSITION OF THE CURRENT COALITION II.3. PRIORITIES OF THE CURRENT GOVERNMENT 3 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] CONTENT (CONT.)

III. INDONESIA IN THE GLOBAL ®IONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE/KONDRATIEFF WAVE III.2. INDONESIA IN THE GLOBAL CONTEXT III.3. INDONESIA IN APEC &

IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES/POWERS IV.1. INDONESIA AND ASEAN CENTRALITY IV.2. NEW EPICENTERS : ASEAN, ,

4 Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] CONTENT (CONT.)

V. INDONESIA AND THE ESTABLISHED POWERS: UNITED STATES AND V.1. INDONESIA-UNITED STATES STRATEGIC/COMPREHENSIVE PARTNERSHIP V.2. INDONESIA-EUROPEAN UNION COMPREHENSIVE PARTNERSHIP AGREEMENT V.3. INDONESIA AND EU ECONOMIC CRISIS

VI. CONCLUSION

5 Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] I. INTRODUCTION X I.1 INDONESIA AT A GLANCE

6 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] I. INTRODUCTION I.1. INDONESIA AT A GLANCE (CONT.) INDONESIA Land Area 1,904,443 sq km √ GDP Size US$ 1 TRILLION (2012) GDP percapita US$ 4,081 (2012) Sea Area 3,116,163 sq km Total Area 5,020,606 sq km Coastal Line 81,000 km Population 245 Million people (4th biggest population) Main Towns Population GDP Share GDP/Capita (‘000) (%) (US$ ‘000) Jakarta (Capital) 9,558 Jakarta (Capital) 16.3 9.9 Surabaya 2,584 East Java 14.7 2.3 Bandung 2,393 West Java 14.3 - Semarang 1,553 Central Java 8.5 - Medan 2,109 North Sumatera 5.4 2.3 Samarinda 791 East Kalimantan 6,2 10.0 Makassar 1,339 South Sulawesi 2.3 -

Languange Indonesian (Bahasa Indonesia) As well as some 7500 other regional languanges and dialects.

Source: various

7 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER Pasaribu, SH., SE., MS./2012; [email protected] RICH NATURAL RESOURCES most of them are still intact to be processed into higher VA products

THERMAL GEO FREQUENCY NATURAL GAS PALM OIL COCOA TIN NICKEL BAUXITE COAL THERMAL SPECTRUM

700 MHz World’s outside Home of th At 770 ± 7 Java, About 165 40% of >19 mil At 65 thou Own largest Potential World world’s thou TCF of tons per tons/year, tons/year, 12% of reserves; arrangeme reserves at Second resources year; world’s world’s largest world’s nd world’s nt for Java Key production (the World’s nd 2 reserves th Metrics rate ± 3 TCF export largest in largest 2 largest (4th 4 area pa er largest ) largest the exporter producer producer largest product 2300-2360 world) ion MHz urban nationwide

• Abundant resources for gas-based energy About 40% is assumed feasible. Up to now, Will be at least and petrochemical partially processed industries 1.200 MW has been developed. domestically by 2013 • Not including Non- (new mining law: Conventional Gases, 4/2009) from Coal Bed Methane and Coal Gassification

8 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] MIDDLE CLASS AND DEMOGRAPHIC STRUCTURE OF PRODUCTIVE AGE GROUP

Middle class is growing 2003 2010 approximately 8 million 35.7% 56.5% per year

THE NUMBER OF INDONESIAN MIDDLE CLASS FAMILY (WHICH HAVE CONSUMPTION RATE OF $5,000 - $15,000 PER YEAR).

(AS COMPARISON: CHINA 31,7%  46,2%, WHILE INDIA 14,6%  41,1% IN Source: BPS, 2011 For more than 30 years 2010-2020). the dependability ratio has been minimum

Source: Euromonitor International 9 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] I. INTRODUCTION (CONT.) I.2. INDONESIA: A LESSON LEARNT 1. 1970S-1980S  POST OIL BOOM INDONESIA SHIFTED ITS DEVELOPMENT AND ECONOMIC POLICY ISI  EOI.

√ 2. EARLY 1990  INDONESIA: EMERGING TIGERS (EAST ASIAN MIRACLES; WORLD BANK 1993).

√ 3. 1997/1998  ASIAN FINANCIAL CRISES. 4. 1998 – 2000  POLITICAL UPHEAVALS & SLOW ECONOMIC RECOVERY.

√ 5. 1998 – 2004  BIG BANG REFORM, 5 PILLARS : DEMOCRACY; HUMAN RIGHTS; ECONOMY ; ECOLOGY; RULE OF LAW PRIME MOVER: EDUCATION  PERMANENT PRIORITY

10 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] I. INTRODUCTION (CONT.) I.2. INDONESIA: A LESSON LEARNT (CONT.) √ 6. 2004 AND 2009  INTERNATIONALLY RECOGNIZED FREE, FAIR AND PEACEFUL DEMOCRATIC PARLIAMENTARY AND DIRECT PRESIDENTIAL ELECTIONS. 7. 1999 – PRESENT  SYSTEM AND INSTITUTION BUILDING. 8. INDONESIA NOWADAYS FIT INTO THE GLOBAL SHIFT FROM GEO-POLITIC TO GEO-ECONOMY  FROM WEST TO EAST  GLOBALIZATION SYNERGIZE WITH REGIONALISM.

√ 9. 2008 – PRESENT  GLOBAL FINANCIAL CRISIS (WEST) √ 10. INDONESIA IN ASEAN  INTO THE GLOBAL COMMUNITY OF NATIONS  EMERGING ECONOMY  .

11 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA II.1. POLITICAL REFORMS AND ROLES

A. 1999  1ST PARLIAMENTARY ELECTION IN THE EARLY REFORM ERA. √ B. 2004  2ND PARLIAMENTARY AND 1ST PRESIDENTIAL DIRECT ELECTION DURING REFORM ERA. LAW ON DE-SENTRALIZATION  MASSIVE DIRECT LOCAL ELECTIONS (300s). √ C. 2009  3RD PARLIAMENTARY AND 2ND PRESIDENTIAL DIRECT ELECTION; MASSIVE DIRECT LOCAL ELECTIONS (300s)  INDONESIA: “ELECTION CAPITAL OF THE WORLD” (WORLD BANK,2010).

12 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.1. POLITICAL REFORMS AND ROLES (CONT.)

D. 2007  UNFCCC COP-13 IN BALI  UNTIL 2009 UNFCCC CLIMATE CHANGE TROIKA (INDONESIA, POLAND, DENMARK) √ E. 2008  STARTING THE G20 SUMMIT (WASHINGTON). √ F. 2011  ASEAN CHAIRMANSHIP  “ASEAN COMMUNITY IN A GLOBAL COMMUNITY OF NATIONS”. √ G. 2013  NEXT APEC CHAIRMANSHIP.

√ H. 2014  NEXT GENERAL ELECTION.

13 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA II.2. COMPOSITION OF CURRENT COALITION A. 2009 GENERAL ELECTION  RE-ELECTED SUSILO BAMBANG YUDHOYONO (SBY) AS PRESIDENT WITH BOEDIONO (ECONOMIST) AS VICE PRES.  BROUGHT TO POWER A MULTI-PARTY COALITION LED BY DEMOCRATIC PARTY (SBY PARTY). √  COALITION IN POWER (59,45%): 1) MIDDLE PARTY : DEMOCRATIC PARTY (PD; 20,85%), GOLKAR PARTY (14,45%), NATIONAL AWAKENING PARTY (PKB; 4,94%) 2) ISLAMIST : PROSPEROUS JUSTICE PARTY (PKS; 7,88%), NATIONAL MANDATE PARTY (PAN; 6,01%), UNITED DEVELOPMENT PARTY (PPP; 5,32%). √  OPPOSITION (40,55%): NATIONALIST/LEFT : INDONESIAN DEMOCRATIC PARTY-STRUGGLE (PDIP; 14,03%), GERINDRA PARTY (4,46%), HANURA PARTY (3,77%).

14 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.2. COMPOSITION OF CURRENT COALITION (CONT.)

B. POLITICAL PARTY SYSTEM IN INDONESIA IN GENERAL IS STILL DOMINATED BY PERSONALITIES RATHER THAN ISSUES, BUT THIS TENDENCY HAS BEEN SLOWLY CHANGING.

√ C. TRENDS: IN RECENT YEARS THE MIDDLE-NATIONALIST PARTIES HAVE BEEN FAR STRONGER THAN ISLAMIST-ORIENTED PARTIES.

15 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT √ A. DEMOCRATIZATION PROCESS : TRANSITION  CONSOLIDATED DEMOCRACY TRANSLATION INTO SERIES OF POLITICAL, ECONOMIC, AND SOCIAL DEVELOPMENT  STRUCTURAL REFORM  ONGOING SYSTEM AND INSTITUTION BUILDING.

√ B. BIG BANG REFORM  SUSTAINABLE DEVELOPMENT BASED ON 5 PILLARS  DEMOCRACY; HUMAN RIGHTS; ECONOMY; ECOLOGY; RULE OF LAW.

√ C. SYNERGISM IN 5 PILLARS  “SECURING TRANSITION FROM A MIDDLE CLASS INCOME COUNTRY INTO A DEVELOPED NATION IN 21ST CENTURY” (PRES. SBY)

16 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.)

√ D. INDONESIA’S AMENDED 1945 CONSTITUTION (chapter XIII/31) HAS MANDATED A MINIMUM 20% OF THE ANNUAL BUDGET BOTH NATIONAL & REGIONAL, TO BE PROVIDED FOR EDUCATION SECTOR  THE ONLY CASE IN THE WORLD.  EDUCATION: PERMANENT/CONSTITUTIONAL PRIORITY.  EDUCATION: PRIME MOVER  SUSTAINABILITY OF THE 5 PILLARS INTO HIGHER QUALITY.

17 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.)

NATIONAL PROJECTION 2010-2025

GDP: US$ 3,8 – 4,5 TRILLION (HIGH INCOME COUNTRY) WORLD’S 12TH GDP: US$ ~ 1,2 TRILLION INCOME/CAPITA: 13.000 – 16.100 US$ 14TH WORLD’S INCOME/CAPITA: US$ ~ 4.800

GDP ~ US$ 700 BILLION DEMOCRACY ECONOMY ECOLOGY TH WORLD’S 17 LARGEST RULE OF LAW INCOME/CAPITA US$ 3,005 HUMAN RIGHTS

Source: Master Plan for Acceleration and Expansion of Indonesia Economic Development 2011-2025; Coordinating Ministry for Economic Affairs Republic of Indonesia; 2011 modified by the author; 2012.

18 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.)

19 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.)

D. 2008-2010 PROJECTION  EXERCISE “DEBOTTLENECKING”, ACCELERATION AND EXPANSION OF INDONESIA’S NATIONAL DEVELOPMENT WITHIN 2010-2015 √ E. 2011  BREAKTHROUGH “MASTER PLAN FOR ACCELERATION AND EXPANSION OF INDONESIA’S ECONOMIC DEVELOPMENT (MP) 2011-2025” (INTEGRAL PART OF THE NATIONAL DEVELOPMENT PLANNING).

20 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.)

F. MASTER PLAN 2011-2025: 1. ACCELERATE AND EXPAND THE ECONOMIC DEVELOPMENT IN SIX INDONESIAN ECONOMIC CORRIDORS; 2. STRENGTHENING NATIONAL CONNECTIVITY; 3. STRENGTHENING HUMAN RESOURCE AND NATIONAL SCIENCE AND TECHNOLOGY CAPABILITY. √ G. COMPRISED OF MAJOR INVESTMENT PROJECTS ON INFRASTRUCTURE, CONNECTIVITY, AND OTHER ECONOMIC SECTORS AND SUB-SECTORS, WITH A TOTAL VALUE INVESTMENT OF RP 4,000 TRILLION (US$ 450 BILLION) UNTIL 2014.

21 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.3. PRIORITIES OF CURRENT GOVERNMENT (CONT.) H. POLITICAL ECONOMY OF STRUCTURAL REFORM : STRUCTURAL REFORMS  SYSTEM AND INSTITUTION BUILDING PROCESS  INDONESIA ALSO INVESTED ITS STRUCTURAL REFORM THROUGH ITS COMMITMENTS IN THE ASEAN, G20, APEC, AND OIC  SYNERGIZED WITH THE GOVERNMENT’S EFFORTS TO STABILIZE PERMANENTLY THE DEMOCRATIC REFORM IN INDONESIA USING ALL THE POTENTIAL OF ECONOMIC DEVELOPMENT BOTH DOMESTICALLY AND INTERNATIONALLY  SUSTAINABLE DEVELOPMENT PRO- GROWTH, PRO-POOR AND PRO-ENVIRONMENT  5 PILLARS: DEMOCRACY; HUMAN RIGHTS; ECONOMY; ECOLOGY; RULE OF LAW. PRIME MOVER: EDUCATION/HUMAN CAPITAL. 22 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.4. LONG TERM PROJECTION 2020, 2030

√ The Super Cycle’s Report (Standard Chartered, 2010)

INDONESIA

INDONESIA

23 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] II. DYNAMIC OF INDONESIA (CONT.) II.4. LONGTERM PROJECTION 2050 (CONT.)

√ World’s Top 10 Economies  European Commission, Europe’s Single Market, together for new growth (2011).

INDONESIA

Source: PriceWaterhouseCooper. European Commission

24 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE / KONDRATIEFF WAVE

√ A. THE SUPER-CYCLE (STANDARD CHARTERED REPORT 2010)

‘A PERIOD OF HISTORICALLY HIGH GLOBAL GROWTH, LASTING A GENERATION OR MORE, DRIVEN BY INCREASING TRADE, HIGH RATES OF INVESTMENT, URBANISATION AND TECHNOLOGICAL INNOVATION, CHARACTERISED BY THE EMERGENCE OF LARGE, NEW ECONOMIES, FIRST SEEN IN HIGH CATCH-UP GROWTH RATES ACROSS THE EMERGING WORLD’

25 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE / KONDRATIEF WAVE (CONT.)

26 Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE / KONDRATIEFF WAVE (CONT.)

√ B. BASIC THEORY ON ECONOMIC CYCLES 1. KITCHEN CYCLES: SHORT TERM +/- 2-3 YEARS 2. JUGLAR CYCLES: MEDIUM TERM +/- 7-11 YEARS 3. KUZNETS CYCLES: MEDIUM TERM +/- 15-22 YEARS 4. KONDRATIEF WAVE: LONG TERM +/- 40-60 YEARS

KONDRATIEF WAVE  THE SUPER-CYCLE

27 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE / KONDRATIEFF WAVE (CONT.)

√ C. THE RAPID INDUSTRIALISATION AND URBANISATION OF APP. 85% OF THE WORLD’S POPULATION LIVING IN EMERGING MARKETS ARE DRIVING THE PRESENT SUPER-CYCLE.

√ D. (STANDARD CHARTERED REPORT 2010) PROJECTION OF EAST ASIA  1. CHINA: In the next 20 years, China will provide one- fifth of global growth, and will become the world’s largest economy by 2020; by 2030, China will be nearly twice the size of the US. 28 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.1. SUPER-CYCLE / KONDRATIEFF WAVE (CONT.)

2. INDIA: India will become the fastest-growing major economy in the next 20 years, with its growth rate set to overtake China’s by 2012.

√ 3. INDONESIA: will be the region’s star performer; the 28th-largest economy in 2000, the world’s 10th- largest in 2020 and fifth-largest in 2030.

29 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT A. INDONESIA AMONG THE EMERGING ECONOMIES (8) √ 1) NEXT-11 (Bangladesh, Egypt, Indonesia, Iran, South Korea, , Nigeria, Pakistan, the Philippines, and Vietnam), The N-11 countries share the characteristics of rapidly growing populations combined with significant industrial capacity or potential and indicate a growing consumer market with increased earning potential, creating business opportunities for both local and international firms (2005: Goldman Sach and economist Jim O’Neil).

√ 2) BRIICS (, , India, Indonesia, China, South Africa), Initially refer as BRIC countries named by Jim O’Neill- in their 2003’s report as the most developing countries with greatest economic potential, with China experiencing the highest growth in the group and Brazil the lowest. Indonesia and South Africa named in the later reference of BRIICS. 30 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.) √ 3) EMERGING-7 (China, India, Brazil, Mexico, Rusia, Indonesia, Turkey), A countries with emerging economies. The E7 are predicted to have larger economies than the G7 countries by 2050. It refers to PWC 2006 & Goldman Sach Report 2007. √ 4) CIVETS (COLOMBIA, INDONESIA, VIETNAM, TURKEY, SOUTH AFRICA), A favour Emerging Markets for several reasons, such as "a diverse and dynamic economy" and "a young, growing population". This group is comparable to the Next-11 (2009: Robert Ward, Economist Intelligence Unit) √ 5) EAGLE (EMERGING AND GROWTH LEADING ECONOMIES), A grouping acronym created in late 2010 by BBVA Research to identify all emerging economies, whose expected contribution to world economic growth in the next ten years is expected to be larger than the average of the G6 economies (G7 excluding the US). Consist of 10 economies in which Indonesia also listed.

31 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.)

√ 6) TIMBI (TURKEY, INDIA, MEXICO, BRAZIL AND INDONESIA), Indonesia is also grouped, according to Jack Goldstone “Foreign Policy” (2011). These countries which have a high potential of becoming, along with the , the world’s largest economies in the 21st century. √ 7) TRILLION-DOLLAR CLUB: In 2012 Indonesia has entered the so called Trillion-Dollar Club with GDP surpassed 1 trillion USD. √ 8) MIST (MEXICO, INDONESIA, SOUTH KOREA, TURKEY), a new acronym coined recently by Jim O’Neill-Goldman Sachs in August 2012, are the 4 biggest markets in the Goldman Sachs N- 11 Equity Fund. The Goldman Sach Fund for MIST has increased 12% in the past year surpassing equity fund for BRIC which only stand for 1,5%. EMERGING MARKETS AND DEVELOPING COUNTRIES ALREADY ACCOUNT FOR OVER HALF OF THE WORLD ECONOMY AND ITS GROWTH. 32 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.)

Average share 0,7%

World export trend 2,94%

33 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.)

34 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.)

√ B. BILATERAL TRADE BINDS (12): 1) Indonesia – Japan Economic Partnership Agreement (EPA) 2) Indonesia – Pakistan Preferential Trade Agreement (PTA) 3) Indonesia – EFTA Comprehensive Economic Partnership Agreement (CEPA) 4) Indonesia – Australia CEPA 5) Indonesia – India Comprehensive Economic Cooperation Agreement (II-CECA) 6) Indonesia – Iran PTA 7) Indonesia – ROK CEPA 8) Indonesia – EU CEPA 9) Indonesia – Chile Free Trade Agreement (FTA) 10) Indonesia – Turkey FTA 11) Indonesia – Tunisia FTA* 12) Indonesia – Egypt FTA*

Implemented Negotiation Joint Study Group ongoing * JSG ongoing 35 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.) √ C. REGIONAL & MULTILATERAL TRADE BINDS (8): 1) World Trade Organization (WTO) 2) ASEAN Economic Community 2015 3) ASEAN-CHINA FTA, A-KOREA FTA, A-JAPAN CEPA, A-AUSTRALIA-NEW ZEALAND FTA, A-INDIA FTA 4) D8-PTA (Bangladesh, Egypt, Indonesia, Iran, Malaysia, Nigeria, Pakistan, Turkey) 5) WTO Doha Round 6) ASEAN Regional Comprehensive Economic Partnership* 7) ASEAN – Gulf Country Cooperation 8) ASEAN – Implemented Negotiation Initial Talks ongoing * Internal discussion before engaging ASEAN FTA Partners 36 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III.2. D. INDONESIAN GLOBAL COMPETITIVENESS (CONT.)

Country(Rank) 2011-2012 2010-2011 INDONESIA Switzerland (1) (out of 142) (out of 139) Singapore (2) Global Competitiveness Index 46 44 Sweden (3)

Finland (4) Basic requirements 53 60 United States (5) 1st pillar: Institutions 71 61 Japan (9) 2nd pillar: Infrastructure 76 82 Australia (20) 3rd pillar: Macroeconomic environment Malaysia (21) 23 34 4th pillar: Health and primary education Korea, Rep. (24) 64 62

New Zealand (25) Efficiency enhancers 56 51 China (26) 5th pillar: Higher education and training 69 66 Brunei Darussalam (28) 6th pillar: Goods market efficiency 67 49 Thailand (39) 7th pillar: Labor market development Indonesia (46) 94 84 8th pillar: Financial market South Africa (50) 69 62 Brazil (53) 9th pillar: Technological readiness 94 91 India (56) 10th pillar: Market size 15 15 Mexico (58) Innovation and sophistication factors 41 37 Turkey (59) 11th pillar: Business sophistication 45 37 0 2 4 6 Score 12th pillar: Innovation 36 36 Source: WEF, Global Competitiveness Report The Ministry of Trade of the Republic of Indonesia 37 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.) √ III.2. E. INDONESIA’S PERFORMANCE:

Moody’s Sovereign Rating (2012). Improved from Ba1 rating in 2011. Economic growth (2011), highest among ASEAN countries Projected to grow GDP (PPP), USD trillion (2010). The largest among ASEAN countries. Investment Growth in 2011

Fitch Investment Grade (2011). More attractive Share of Middle Class to total population (2010). than before (BB+ rating). Shows a increasing number of wealthy individuals

Rank on Global Competitiveness Index 2011, increased from 69th in 2005. Position on FDI Confidence Index 2012 (A.T. Kearney). Indonesia was on 20th in the previous year. 38 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.2. INDONESIA IN THE GLOBAL CONTEXT (CONT.)

F. Indonesia ranked nr. 76 out of 208 countries in the 2012 KOF Economic Globalization Index, and it was nr. 77 in 2011.

√ G. INDONESIA’S TREND IN GLOBALIZATION SHOWS A BEYOND ENCOURAGING TREND  SUPPORT BY SUPER-CYCLE PROJECTION AND INCREASING SIGNIFICANCE OF INDONESIA’S 5 PILLARS OF SUSTAINABLE DEVELOPMENT IN THE GLOBALIZATION CONTEXT  LEAD TO A NEW ERA FOR EAST ASIA.

39 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.3. INDONESIA IN APEC AND G20 √ A. INDONESIA IN APEC (21) The Asia Pacific Economic Cooperation (APEC)  established more than two decades ago  many achievements  peace, stability, prosperity and increased economic integration.  9 out of the 21 APEC members are G20 members and the world’s largest economies (United States, Japan and China) & includes emerging economies such as South Korea, Indonesia, Mexico, Russia, Vietnam etc. (next few decades, most of Asia Pacific economies will join the ranks of middle-income countries). 40 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.3. INDONESIA IN APEC AND G20 (CONT.) B. INDONESIA IN G20

√ 1. G20  started 1999  Summit started 2008 & replaced G8 as MAIN economic council of wealthy nations. 2. Set up by established powers to reflect new economic realities in which they saw new emerging powers as an opportunity for potential cooperation in addressing financial & economic global challenges. 3. Indonesia is the only ASEAN countries represented in the G20

41 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] III. INDONESIA IN THE GLOBAL AND REGIONAL CONTEXT: SUPER-CYCLE III.3. INDONESIA IN APEC AND G20 (CONT.) 4. INDONESIA IN G20  SOLUTIONS TO GLOBAL ECONOMIC PROBLEMS  PARTNERSHIP G20  global imbalances; IFI reform G20 together with other emerging economies  global financial safety net G20 with all the developing world  deliver an inclusive growth  implementation on Multi Year Action Plan.

√ 5. INDONESIA PRIORITIES  Financial Inclusion; Social Safety Nets; Aid for trade; Food Security  Key development issues in G20.

42 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS IV.1. INDONESIA AND ASEAN CENTRALITY √ A. SOUTHEAST ASIAN AFFAIRS: IMPORTANT ISSUES • SOUTH CHINA SEA DISPUTE • PROLIFERATION OF ECONOMIC & TRADE PARTNERSHIP IN ASEAN COUNTRIES √ B. INDONESIA AS DYNAMIC STABILIZER THROUGH ASEAN

C. INDONESIAN LEADERSHIP IN ASEAN

D. ASEAN INTEGRATION AND ASEAN COMMUNITY 2015

43 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS (CONT.) IV.1.√ INDONESIA AND ASEAN CENTRALITY (CONT.) SOUTH CHINA SEA DISPUTE  China & Some ASEAN Countries  Code of Conduct in the South China Sea Other territorial disputes  Within ASEAN & with other Asian Countries

PROLIFERATION OF ECONOMIC & TRADE PARTNERSHIP IN ASEAN COUNTRIES

INDONESIA AS DYNAMIC STABILIZER

44 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS (CONT.) IV.1.√ INDONESIA AND ASEAN CENTRALITY (CONT.) “ASIA PACIFIC REGIONAL SECURITY & STABILITY” ASEAN REGIONAL FORUM (ARF)

“EMERGING ASIAN REGIONAL ARCHITECTURE” ACCESION TO THE ASEAN TREATY OF AMITY AND COOPERATION AS PRE REQUIREMENT TO EAS

INDONESIA AS DYNAMIC STABILIZER THROUGH THE ASEAN CENTRALITY

45 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS (CONT.) √ IV.1. INDONESIA AND ASEAN CENTRALITY (CONT.)

F. ASEAN CENTRALITY ASEAN REGIONAL FORUM (ARF-27) CONCENTRIC CIRCLES EAST ASIA SUMMIT (ASEAN+8)

ASEAN+3

ASEAN+1

ASEAN COMMUNITY 2015 ASEAN AND BEYOND

* Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania 46 Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV.1. INDONESIA AND ASEAN CENTRALITY (CONT.) √ G. INDONESIA WITHIN ASEAN CENTRALITY IN THE GLOBAL LANDSCAPE OF REGIONALISM

G20

Economic architecture context.

ASEAN + 1 Mechanism context. Source: Emerging Asian Regionalism: a Partnership for Shared Prosperity (A Study by ADB; 2008) – modified by the author; 2012. 47 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS IV.2. NEW EPICENTERS: ASEAN, CHINA, INDIA

√ A. ASIAN TRIANGLE EMERGING ENONOMY AND POWERS  3 EPICENTERS  ASEAN, CHINA, INDIA

Asia’s economic rise in the current era  focused on its newly-industrialized economies, known as NIEs: South Korea, Taiwan, Hong Kong, Singapore, China, India, Indonesia, Malaysia, Philippines, Thailand and Vietnam (“developing Asia” : IMF Report)

48 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS (CONT.) √ IV.2. NEW EPICENTERS: ASEAN, CHINA, INDIA (CONT.)

√

Source: MP-AEIED 2010-2025

49 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] IV. INDONESIA AND ASIAN TRIANGLE EMERGING ECONOMIES AND POWERS (CONT.) √ IV.2. NEW EPICENTERS: ASEAN, CHINA, INDIA (CONT.)

ASEAN= 0,6 BILLION EUROPEAN UNION = UNITED STATES = 0,5 BILLION 0,32 BILLION

3,1 BILLION

CHINA= 1,3 BILLION INDIA= 1,2 BILLION

50 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected]

√ V. INDONESIA AND THE ESTABLISHED POWERS: UNITED STATES & EUROPEAN UNION

• INDONESIA’S POSITION AS THE 3RD LARGEST DEMOCRATIC COUNTRY AND THE BIGGEST MOSLEM COUNTRY IN THE WORLD (WITH DEMOCRATIC, MODERATE & TOLERANCE CHARACTERISTIC) . • INDONESIA’S LEADERSHIP ROLE IN ASEAN. • INDONESIA’S PROFILE AS , EMERGING ECONOMY AND ITS PROJECTION TO BE EMERGING POWER.

A. INDONESIA – UNITED STATES B. INDONESIA – EUROPEAN UNION (EU)

51 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] V. INDONESIA AND THE ESTABLISHED POWERS V.1. INDONESIA-UNITED STATES

√ A. INDONESIA – UNITED STATES COMPREHENSIVE STRATEGIC PARTNERSHIP 1. 2010  LAUNCHED BY PRESIDENTS OBAMA AND PRES. YUDHOYONO  A LONG TERM COMMITMENT TO ELEVATE BILATERAL RELATIONS BY INTENSIFYING CONSULTATIONS AND DEVELOPING HABITS OF COOPERATION ON KEY BILATERAL, REGIONAL, AND GLOBAL ISSUES. 2. COOPERATION UNDER THE COMPREHENSIVE PARTNERSHIP IS OUTLINED IN A PLAN OF ACTION CONSISTING OF THREE PILLARS: POLITICAL AND SECURITY; ECONOMIC AND DEVELOPMENT; AND SOCIO-CULTURAL, EDUCATION, SCIENCE, AND TECHNOLOGY COOPERATION.

52 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] V. INDONESIA AND THE ESTABLISHED POWERS (CONT.) V.2. INDONESIA-EUROPEAN UNION

√ B. INDONESIA – EUROPEAN UNION (EU) 1. INDONESIA – EU COMPREHENSIVE PARTNERSHIP AND COOPERATION AGREEMENT (PCA)  2009. 2. THE ONLY ASIAN COUNTRY WHICH HAVE SUCH A COMPREHENSIVE AGREEMENT WITH THE 27 EU MEMBER COUNTRIES. 3. IT IS STILL WAITING FOR 5 MORE EU COUNTRIES TO RATIFY FOR THE FULL IMPLEMENTATION EXPECTED ON 2013. 4. ENHANCE SIGNIFICANTLY TIES BETWEEN INDONESIA-EU IN ALL AREAS AND MOST IMPORTANTLY IN TERM OF POLITICAL PROFILE, RANGE OF DIALOGUE &SCOPE OF COOPERATION.

53 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] V. INDONESIA AND THE ESTABLISHED POWERS (CONT.) V.3. INDONESIA AND EU ECONOMIC CRISIS

√ C. INDONESIA AND EU ECONOMIC CRISIS

1. REGIONAL/GLOBAL ECONOMIC CRISIS  IMBALANCES AND COLLISIONS  TEND TO SEEK NEW EQUILIBRIUM.

2. THE ECONOMIC CRISIS IN EU TODAY  HAS A POTENTIAL TENDENCY TOWARDS A RECESSION IN EU WHICH WILL AFFECT THE REST OF THE WORLD RELATIVELY.

3. INDONESIA AND ASEAN HAS SEVERAL LESSONS LEARNT MAINLY FROM 1997/1998 ECONOMIC CRISIS.

54 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] V. INDONESIA AND THE ESTABLISHED POWERS (CONT.) V.3. INDONESIA AND EU ECONOMIC CRISIS (CONT.)

4. THE IMPACT OF EU ECONOMIC CRISIS TO INDONESIA HAS BEEN ANTICIPATED IN SEVERAL WAYS AMONG OTHERS:

A. DEMAND ASPECT  INCREASING DEMAND BY THE MIDDLE CLASS BOOMING AND SCALE IN INDONESIA B. INVESTMENT ASPECT  MASSIVE DEVELOPMENT OF INFRASTRUCTURE AND CONNECTIVITY IN INDONESIA AND ASEAN  FOREIGN INVESTMENT RELOCATION TO INDONESIA (30% OF GDP IN 2012) AND ASEAN  BOTH EXPECTED TO SUPPORT THE EXPORT LED GROWTH PERFORMANCE C. FISCAL EXPANSION  INDONESIA STILL HAVE AMPLE ROOM FOR BUDGET EXPANSION: - INDONESIA’S BUDGET DEFICIT HAS BEEN MANAGED ONLY BY 1,2%; ASEAN HAS ADOPTED A SAFE LIMIT OF 3% FOR BUDGET DEFICIT. - INDONESIA’S PUBLIC DEBT HAS BEEN MANAGED ONLY 27% OF ITS GDP; ASEAN HAS ADOPTED A SAFE LIMIT OF 60%.

55 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] V. INDONESIA AND THE ESTABLISHED POWERS (CONT.) V.3. INDONESIA AND EU ECONOMIC CRISIS (CONT.)

THE EU ECONOMIC CRISIS WHICH PROBABLY COULD LEAD TO A RECESSION IN EUROPE WILL AFFECT MANY MAJOR ECONOMIES IN THE WORLD

INDONESIA HAS STRONG CONFIDENCE THAT THE EU ECONOMIC CRISIS WOULD NOT SEVERELY IMPACT THE INDONESIA’S HIGH ECONOMIC GROWTH IN THE FUTURE

56 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] VI. CONCLUSION I 1. SYSTEM & INSTITUTION BUILDING PROCESS 2. BASED ON FIVE PILLARS (DEMOCRACY, HUMAN RIGHTS, ECONOMY, ECOLOGY, RULE OF LAW) 3. PRIME MOVER: EDUCATION/HUMAN CAPITAL  PERMANENT PRIORITY 4. POLICY ORIENTATION: MILLION FRIENDS, ZERO ENEMIES 5. BASIC ROLE: AS DYNAMIC STABILIZER 6. BASIC APPROACH: REGIONAL & GLOBAL SYNERGISM WITH “COOPETITION” (COOPERATION+COMPETITION) MINDSET

SECURING INDONESIA AS DEVELOPED NATION IN THE 21ST CENTURY 57 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania

Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected] VI. CONCLUSION II

1) INDONESIA & DENMARK SHARE COMMON VALUES IN THE 5 PILLARS OF SUSTAINABLE DEVELOPMENT 2) BOTH REFER TO WELFARE STATES MODEL OF DEVELPOMENT 3) COOPERATION IN EDUCATION ALONG WITH THE 5 PILLARS BECOME ONE OF THE MAIN PRIORITIES IN INDONESIA-DENMARK RELATIONS

58 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania Copy Right: PROF. DR. (IPB) H. BOMER PASARIBU, SH., SE., MS./2012; [email protected]

MANGE TAK! THANK YOU

Aarhus, 19th September 2012

59 * Ambassador of The Republic of Indonesia to The Kingdom of Denmark and to The Republic of Lithuania