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In accordance with Article 4 of Law Number 25 Year 2004 on National Development Planning, the National Long Term Development Plan (RPJPN 2005-2025) has been drawn up as a continuation and renewal of earlier stages of development planning in Indonesia. The RPJPN, a development plan which stretches twenty years, aims to achieve the development goals as mandated in the Preamble to the Constitution of 1945. This long term plan involves conducting institutional restructuring while simultaneously keeping the nation in pace with other nations.
This RPJPN is for reasons of planning and efficiency divided in four stages, each with a lifespan of five years. These four stages are the four separate medium term plans called National Medium Term Development Plan (abbreviated RPJMN) and run parallel with the taking office of a new government. Through these medium term plans separate governments can set their own priorities in the process of national economic development (on the condition that these priorities are in line with the long term RPJPN).
Vision and Mission of RPJPN 2005-2025
The vison and mission of the RPJPN 2005‐2025 is to establish a country that is developed and self-reliant, just and democratic, and peaceful and united.
The three underlined word pairs are elaborated as follows:
Developed and self-reliant; to encourage development that ensures the widest possible equality in the country, supported by quality human resources, developed infrastructure, the application of science and technology, and supported by the implementation of a free and active foreign policy.
Just and democratic; to encourage development that ensures the rule of law that is fair, consistent, non-discriminatory, serves the public interest and supports the gradual continuation of democracy in various aspects of political life in order to be accepted as a constitutional democracy.
Peaceful and united; to encourage development that is able to realize a sense of security and peace among all people, able to accommodate the aspirations of this dynamic society, upholding state sovereignty and territorial integrity, as well as to protect all people from any threat.
During the course of this plan, economic development is aimed at achieving the following main objectives:
The establishment of a solid structure in which the agricultural economy (in the broad sense) and mining form the basis of an economy that produces products in both an efficient and modern manner, in which the manufacturing industry contains global competitiveness and becomes the motor of the economy, and services become the glue of economic resilience.
• Income per capita in 2025 should reach approximately USD $6000 in combination with a relatively good level of equity while the amount of poor people should not be over five percent of the total population.
• Reach food self-sufficiency and maintain it at safe levels. It should contain enough nutritional quality and be available for every household.
The Medium Term Plans
As mentioned above, the RPJPN is divided in four separate medium term plans (RPJMNs) which all have a life span of five years. Of these four plans only the first one has been finished. Currently, the second plan is in progress. The basic scale of priorities and strategies of the respective RPJMNs are summarized in the following:
1. The First RPJMN (2005-2009)
Unfortunately, this RPJMN was executed during a period of external shocks brought on by the crisis in the United States and Europe. Although Indonesia was still able to show growth, these external shocks did cause a negative impact, especially on social indicators such as poverty eradication and tackling of unemployment. Also the fuel subsidy cuts in 2005 had a negative impact on these indicators due to the resulting high inflation.
This stage aims at greater consolidation of the reform of Indonesia in all fields by emphasizing endeavors for increasing the quality of human resources, including the promotion of capacity building in science and technology and the strengthening of economic competitiveness.
3. The Third RPJMN (2015-2019)
This third stage is aiming for the greater consolidation of development in a comprehensive manner in all fields by emphasizing attainment of economic competitiveness on the basis of competitiveness of natural resources and the quality of human resources and by the increasing capability to master science and technology.
4. The Fourth RPJMN (2020-2025)
Aims to realize an Indonesian society that is self-reliant, advanced, just, and prosperous through the acceleration of development in various fields by emphasizing the realized economic structure that is more solid on the basis of competitive advantage in various regions, and is supported by quality and competitive human resources.