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The government of Indonesia places high priority on nationwide economic and social development. It has drafted a number of ambitious objectives that should be reached by the year 2025.
These objectives include:
• an orderly, developed, peaceful and socially just society
• a competitive and innovative population
• a just democracy
• social and developmental equality among all people and all areas in the country
• to become an important global economic and diplomatic force
To achieve these targets, the government drew up three interrelated and interdependent development plans:
|♦ National Long‐Term Development Plan (RPJPN)
(Rencana Pembangunan Jangka Panjang Nasional)
♦ National Medium‐Term Development Plan (RPJMN)
(Rencana Pembangunan Jangka Menengah Nasional)
♦ Masterplan for Acceleration and Expansion of Indonesia's Economic Development (MP3EI)
(Masterplan Percepatan dan Perluasan Pembangunan Ekonomi Indonesia)
The first of these development plans, the RPJPN, is hierarchically most important and spans the period from 2005 to 2025. This long-term plan 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 RPJMNs and run parallel with the taking office of a new central government. Through these medium term plans separate governments are able to set their own priorities in the process of national economic development (on the condition that these policies are in line with the long term RPJPN). The MP3EI was implemented in 2011 in order to assist the RPJMN in accelerating and expanding the economic development of Indonesia.
This section provides a comprehensive outline regarding these three government development plans in which the private sector is envisaged to play a significant role through public-private partnerships with the Indonesian government.
National Long Term Development Plan (RPJPN 2005‐2025)
This ambitious long term development plan of the government serves as reference point for the whole Indonesian society (government, people, and businesses) in order to achieve the national objectives as drafted and formulated by the democratic chosen government of Indonesia. This development plan, which runs until 2025, is divided in four medium-term plans and assisted by the MP3EI.
National Medium Term Development Plan (RPJMN 2015‐2019)
Indonesia's National Medium Term Development Plan 2015-2019 (RPJMN 2015-2019) is the third phase of implementation of the 2005-2025 National Long-Term Development Plan (RPJPN). It constitutes the basis for all ministries and government agencies for formulating their respective Strategic Plans. Local governments must take this plan into account when formulating their regional development policies.
Masterplan for Acceleration and Expansion of Indonesia Economic Development (MP3EI)
The MP3EI is a masterplan, unveiled in 2011, through which the government initially targeted for an economic growth rate of seven to eight percent per year after 2013, while aiming to turn Indonesia into one of the world's largest economies by 2025. The masterplan includes USD $470 billion in investment that, to a large extent, needs to be supplied by the private sector through public-private partnerships.