January 24, 2021

Decline in Competitiveness

Whenever decreased competitiveness, great nations have always noisy. So when the global competitiveness ranking Indonesia dropped from position 46 to No. 50. Unlike true with countries that have always ranked at the bottom: Haiti, Sierra Leone, and Burundi.

As powerless and helpless, from one year to dwell there. Small noises certainly not just belong to Indonesia. On television I saw a number of discussions that mention despite Indonesia’s rating fell, investments in certain business sectors (especially oil) rose steadily. The discussions revolved around the value of new investment, not on productivity.

Similarly, no one has questioned why Malaysia more attractive to Tony Fernandes to be home-based Air Asia than Indonesia which clearly its market is much larger. Similarly, more interested in why Lion Air took Malindo to be the hub for the international airline business. If it was included would be more interesting.

From Thailand Thanong Khanthong wrote his opinion in The Nation. He questioned why the ratings Thailand (ranked 38th) could be assessed under the hardship-stricken country amid distrust, Spain (ranked 36th). Spain has just requested a bailout fund of 100 billion euros. Spanish Economic conditions were very tough, just like the current economic conditions Thailand hit by the economic crisis in 1997.

Similarly mastered how to explain the Russian energy business worth $ 2 trillion just in No. 67 and India only at No. 59. How can we accept Israel’s competitiveness (ranked 26th) is higher than China (29) which controls the world’s largest foreign exchange reserves?

But one thing needs to be understood by the leaders of Indonesia, economic and business can no longer be separated and to develop the economy or the welfare approach is needed more than just macroeconomic policy.

Culture vs. Kultur Business Economics

Although the business is part of the economic activity, scientifically according to the day they move to a different runway. Superior Nations is a nation that is able to integrate both simultaneously. One is the stability of the state level, the one taking care of the business world. Way of thinking is different, but once put together, the results can be productivity.

In this case Indonesia need to revisit the concept of economic development is charged to Bappenas. Bappenas can not work without the principles of strategic management for Indonesia’s economy has been transformed into a complex system. Indonesia has turned into a great power with a very diverse actor with the mindset, the way to work or interests vary in a very broad spectrum.

Without a good strategic planning, what has been stated is not necessarily carried out and what the run is not necessarily what you want to meet. If not Bappenas, who held the role of strategic planning in this country?

If we peek at the way in which the nations of the superior, who always occupied the top ranking, which despite crisis remains optimistic look tomorrow and get back, we can see the role of strategic planning is so intense.

Country is not only busy with himself, but to work with the business to be able to generate economic activity are more valuable, more capable of creating wealth through jobs. Switzerland and Singapore for example, was ranked first and second, but in fact is not a country rich with natural resources.

But they can get out of the trap limits, come out with a series of productive strategies. Certainly not without problems, but the state-run good strategic planning took over the perceived concerns of its citizens (uncertainty) into programs that are adaptive and able to be a winner. Economic development has its own way of looking wide influence in the choices given.

When you look at the economic paradigm of wealth in terms of sectors and commodities, saw strategic planning and brand of eyewear segment. Just look at the headlines in the newspapers of various countries. When a country’s economy is still simple and the concept of economic development is based, the headlines are always about the economic sectors (such as agriculture, mining, finance) and commodities (rice, rubber, coffee, gold, and so on).

As in countries whose economies have a competitive advantage, the headlines are no longer sectors and commodities, but the segment and brand. Anyway all the company’s name and brand is already inevitable by the media. In South Korea there is always a story with the title Samsung, Hyundai or Daewo. In China there is the title Cnoock or Cinopec. So too if you go to Malaysia, Singapore and countries in Western Europe and the United StatesEven in those countries that you rarely encounter headlines that promote economic and commodity sectors. Everything speaks the name, the name of economic powerhouse. Commodities are the result of natural resources has not been processed into value-added productive economic activities. When harvest occurs, excess supply, prices will fall, and welfare of all its links disrupted as is happening to mining commodities in Kalimantan and Sulawesi today.

Conversely, a more sophisticated society no longer buy coffee or cocoa. They bought Starbucks, Ship Fire or Torabika. Silver Queen, Van Houten, Lindt, or Godiva. Once a nation brand building, innovation to work, patents began to appear and improved infrastructure. The newspaper was not shy to make a name as a headline. That is measured in competitiveness indices concerning many things.

Brand and economic powerhouse requires a healthy business climate so competitive and capable of running the government’s supporting role as job security. Broad-based economic impact brands, ranging from reputation, standardization, quality of human resources to infrastructure and bureaucracy. That is why economic planning can not only be built on the foundation of thinking flat.

Economic planning needs to be made with a modern and sophisticated management, seeking earnestly that Indonesia’s natural resources capable of generating superior brands with high reputation. There is still a lot going on national entrepreneurs who move operations overseas offices and operates its global brand from neighboring countries.

Base production-based commodity that are placed in Sumatra or Borneo, but the packaging, marketing and research exist in other countries. This global brand is widespread in a variety of markets from Africa to Latin America and there was no way the sentence is written “Made In Indonesia” So I think Indonesia needs to think of new ways to promote the business logic to advance their welfare.

Indonesia needs to build dozens of independent economic powerhouse, capable of attracting 52 million informal sector into the global battle system is more dignified. To that end, the logic of modern management and strategic planning in the organization of the state should be..