REPUBLIC OF INDONESIA PRESIDENTIAL REGULATION NUMBER 7 OF 2005 ON THE NATIONAL MEDIUM-TERM DEVELOPMENT PLAN 2004 – 2009 REPRINTED BY BAPPENAS PRESIDENTIAL REGULATION NUMBER 7 OF 2005 ON THE NATIONAL MEDIUM-TERM DEVELOPMENT PLAN 2004 – 2009 WITH THE GRACE OF ALMIGHTY GOD, THE PRESIDENT OF THE REPUBLIC OF INDONESIA, Having Considered: that for implementing the stipulation of Article 19 paragraph (1) of Law Number 25 of 2004 on the National Development Planning System, it is deemed necessary to issue the Presidential Regulation on the National Medium-Term Development Plan of 2004– 2009; Having Taken Into Account: 1. Article 4 paragraph (1) of the 1945 Constitution of the Republic of Indonesia; 2. Law Number 17 of 2003 on State Finance (State Gazette of the Republic of Indonesia of 2003 Number 47; Addendum to the State Gazette of the Republic of Indonesia Number 4287); 3. Law Number 25 of 2004 on the National Development Planning System (State Gazette of the Republic of Indonesia of 2004 Number 104, Addendum to the State Gazette of the Republic of Indonesia Number 4421). HAS DECIDED: To issue the: PRESIDENTIAL REGULATION ON THE NATIONAL MEDIUM-TERM DEVELOPMENT PLAN OF 2004–2009. Article 1 In this Presidential Regulation, the following terms are used: 1. The National Medium-Term Development Plan of 2004–2009 (Rencana Pembangunan Jangka Menengah Nasional Tahun 2004–2009), henceforth called RPJM Nasional, refers to the national development plan document for the five (5) years period, from 2004 through 2009. 2. The Medium-Term Development Plan of Ministries/ Agencies of 2004–2009, henceforth called the Strategic Plan of Ministries/Agencies, refers to the planning document of Ministries/Agencies for the 5 (five) years period from 2004 through 2009. 3. The Regional Medium-Term Development Plan of 2004–2009 (Rencana Pembangunan Jangka Menengah Daerah Tahun 2004–2009), that henceforth is called RPJM Daerah, is the regional development plan document for the five (5) years period, from 2004 through 2009. 4. The Minister refers to the State Minister for National Development Planning/Chairman of the National Development Planning Agency. Article 2 (1) The RPJM Nasional is the elaboration of the vision, mission, and programs of the President who has been elected in the General Election, that had been carried out in a direct manner in 2004. (2) The RPJM Nasional, as referred to in paragraph (1), becomes the guideline for the: a. Ministries/Agencies in formulating the Strategic Plans of Ministries/Agencies; b. Regional Governments in formulating the RPJM Daerah; and c. Government in formulating the Government Work Plan (Rencana Kerja Pemerintah/RKP). Article 3 Ministries/Agencies and Regional Governments execute the programs in the RPJM Nasional as contained in Strategic Plans of Ministries/Agencies and in the Regional RPJM (RPJM Daerah). Article 4 Ministries/Agencies and Regional Governments can consult and coordinate with Ministers in the formulation of the Strategic Plans of Ministries/Agencies and of the Regional RPJM. Article 5 The Minister monitors the implementation of the RPJM Nasional which has been specified into the Strategic Plans of Ministries and in the RPJM Daerah. Article 6 The RPJM Nasional is as contained in the Attachment of this Presidential Regulation and constitutes one integral and inseparable part of this Presidential Regulation. Article 7 In order that it be known by everyone, to instruct the enactment of this Presidential Regulation by its placement in the State Gazette of the Republic of Indonesia. Issued in Jakarta on the 19th of January, 2005 PRESIDENT OF THE REPUBLIC OF INDONESIA signed Dr. H. SUSILO BAMBANG YUDHOYONO Enacted in Jakarta on the 19th of January, 2005 MINISTER OF LAWS AND BASIC HUMAN RIGHTS, signed HAMID AWALUDIN STATE GAZETTE OF THE REPUBLIC OF INDONESIA OF 2006 NUMBER 11 Copied in accordance with the original Deputy for Cabinet Secretary on Laws and Law Regulations, signed Lambock V. Nahatthands CONTENTS PART I: NATIONAL DEVELOPMENT PROBLEMS AND AGENDAS 2004–2009 Chapter 1 Issues and Agendas of National Development in 1-1 2004–2009 PART II: AGENDA FOR CREATING INDONESIA THAT IS SECURE AND PEACEFUL Chapter 2 Enhancing Mutual Trust and Harmonization 2-1 Among Social Groups Chapter 3 Development of Culture Based on Noble Ancestral 3-1 Values Chapter 4 Enhancing Security and Order and Overcoming Crime 4-1 Chapter 5 Preventing and Overcoming Separatism 5-1 Chapter 6 Preventing and Overcoming Terrorism 6-1 Chapter 7 Enhancing the Capacity of the State Defense 7-1 Chapter 8 Consolidating Foreign Policy and Enhancing 8-1 International Cooperation PART III: AGENDA FOR CREATING INDONESIA THAT IS JUST AND DEMOCRATIC Chapter 9 Straightening-Up the Legal and Political System 9-1 Chapter 10 Eradication of Discrimination in Its Various Forms 10-1 Chapter 11 Respect for Acknowledgement and Enforcement 11-1 of the Law and Basic Human Rights Chapter 12 Enhancement of the Quality of the Life and Role of 12-1 Women and Enhancement of Children’s Well-Being and Protection Chapter 13 Revitalization of the Decentralization and Regional 13-1 Autonomy Process Chapter 14 Creating a Clean and Credible Governance 14-1 Chapter 15 Realization of Increasingly Solid Democratic 15-1 Institutions i PART IV: AGENDA FOR ENHANCING WELFARE OF THE PEOPLE Chapter 16 Poverty Alleviation 16-1 Chapter 17 Increasing Investment and Non-Oil/Gas Exports 17-1 Chapter 18 Enhancing Competitiveness of the Manufacturing 18-1 Industry Chapter 19 Agriculture Revitalization 19-1 Chapter 20 Empowerment of Cooperatives, and Micro, Small 20-1 and Medium Enterprises Chapter 21 Enhancing the Management of State-Owned 21-1 Enterprises Chapter 22 Increasing the Capability in Science and Technology 22-1 Chapter 23 Improving Manpower 23-1 Chapter 24 Consolidation of Macro-Economic Stability 24-1 Chapter 25 Rural Development 25-1 Chapter 26 Reducing the Imbalanced Development Among 26-1 Regions Chapter 27 Increasing Access of the People to Quality 27-1 Education Chapter 28 Improving Access of the People to Quality 28-1 Health Services Chapter 29 Enhancing Social Security and Welfare 29-1 Chapter 30 Development of Population, Quality Small Families, 30-1 Youth and Sports Chapter 31 Enhancing the Quality of Religious Life 31-1 Chapter 32 Improving Management of Natural Resources 32-1 and Conservation of Functions of the Natural Environment Chapter 33 Accelerating Infrastructure Development 33-1 PART V: MACRO ECONOMIC FRAMEWORK AND DEVELOPMENT FINANCING Chapter 34 Macro Economic Framework and Development 34-1 Financing ii PART VI: CLOSING PROVISIONS Chapter 35 Implementation Norm 35-1 Chapter 36 Formulation of the 2010 Government Work 36-1 Plan Draft iii CHAPTER 1 ISSUES AND AGENDAS OF NATIONAL DEVELOPMENT IN 2004–2009 Article 19 paragraph (1) of Law Number 25 of 2004 on the National Development Planning System states that the National Medium-Term Development Plan is to be issued not later than three (3) months after the installation of the President. The National Medium-Term Development Plan is an elaboration of the vision, mission, and programs of the President for five (5) years, which is to be pursued through the Basic Strategy that is further specified into the National Development Agenda, which contains the main targets that must be attained, policy directions, and programs of development. The issuance of the 2004–2009 National Medium-Term Develop- ment Plan is based on the consideration that the President elect is installed in October 2004 and to be followed up by the President elect by formulating the 100 days Program, which constitutes part of the 2004– 2009 National Medium-Term Development Agenda of the United Indonesia Cabinet. A. NATIONAL DEVELOPMENT ISSUES IN 2004–2009 The economic development that has been carried out in the past has yielded various significant achievements. On the other hand it has also led to various problems that need to be urgently resolved. Development that in the past emphasied attaining high economic growth had increased income per capita, reduced the total number of poor and unemployed people, and had on the average improved the quality of life. Nevertheless, the economic development that had been very much oriented to increasing the national product had not been accompanied by the development and strengthening of public institutions nor market institutions, mainly financial institutions that should have carried out the function of efficiently and wisely allocating resources. In fact, the economic development process, that had been buttressed by a repressive Chapter 1 – 1 and closed system, had paralyzed various strategic institutions, such as the law system and judicial system that should have ensured legal certainty and justice, the political system for assuring the checks and balances system, and the social system that is required for maintaining a harmonious and peaceful life. The results of development had in fact led to adverse effects in the form of gaps among different income brackets, among regions, and among social groups. Meanwhile, the erosion and paralysis of various systems and strategic institutions, have produced a fragile system that is very vulnerable to shocks that arise from within the country as well as from international development on account of the globalization process. The economic crisis in 1997/98 has given a costly and yet valuable experience to the Indonesian people. The crisis forced Indonesia to carry out reforms that are necessary for correcting the weaknesses and mistakes of the past. Reforms have been made in the economic, political, social and law areas so that these areas have undergone a transformation towards a new system that is expected to be able to be more just, reliable, and sustainable. Nevertheless, such reforms and transformations have not yet been able to produce satisfactory results. In fact some of the initial reforms and transformations have produced various complicated implications that demand continued resolutions in a systematic and consistent manner.