I - 1

CHAPTER IINTRODUCTION

elaborates the Vision, Mission,and Program of the President

Book I:

just, prosperous and democratic Indonesia

Book II:

�“Strengthening Synergy Among Development Fields�”

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Book III:

DIAGRAM 1RELATION OF BOOK I, II, AND III

Field PrioritiesSocial-Cultural

EconomicScience&Technology

InfrastructurePolitical

Defence&SecurityLaw&State Apparatus

Region&SpatialNatural Resources&Environment

Regional PrioritiesSumatraJava-Bali

KalimantanSulawesi

Nusa TenggaraMalukuPapua

VISION-MISSIONSBY-BOEDIONO

11 National Priorities +

3 Other National Priorities

RPJMN2010-2014

I

II III

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CHAPTER IIOVERALL CONDITION

2.1. Background

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2.2. Achievements of National Development in 2004 2009

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DIAGRAM 2CORRUPTION PERCEPTION INDEX OF INDONESIA

Corruption Perception Index

2.0

2.8

0.0 0.5 1.0 1.5 2.0 2.5 3.0

2004

2005

2006

2007

2008

2009

Corruption Perception Index 2.0 2.2 2.4 2.3 2.6 2.8 2004 2005 2006 2007 2008 2009

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DIAGRAM 3GRAPH OF REGISTERED CASES AND OF BACKLOG CASES

2005, 7468

2006, 7825

2007, 9516

2008, 11338

2004, 20314

2005, 15975

2006, 12025

2007, 10827

2008, 8280

0

5000

10000

15000

20000

25000

2004 2005 2006 2007 2008

Registered Cases Remaining not settled cases

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DIAGRAM 4ECONOMIC GROWTH AND GDP PER CAPITA

6.1 % 6.3 % 5.5%5.7%

5.0%

US$ 2 . 271

US$1.186

US$ 478

20

15

10

5

0

5

10

1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

GDP&Non

oil/Gas

GDP(%

,yoy)

0

500

1000

1500

2000

2500

GDPPe

rcapita

(US$)

GDP NON OIL/GAS GDP

GDP PER CAPITA

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First,

Second

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DIAGRAM 5TOTAL OF POOR POPULATION AND POVERTY RATE

16.66 %

17.75 %

14.15 %

2 1 4 7

10 13 16 19 22 25 28 31 34 37 40

Total in million;poverty rate in%

Total of poor population(million persons)

36.10 35.10 39.30 37.17 34.96 32.53

Poverty rate (%) 16.66 15.97 17.75 16.58 15.42 14.15

2004 2005 2006 2007 2008 2009

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DIAGRAM 6TOTAL OF THE LABOUR FORCE, EMPLOYEDWORKERS, AND OPEN

UNEMPLOYMENT

9.86%

11.24%

10.28%

9.11%8.39%

7.87%

0

15

30

45

60

75

90

105

120

Tota

l (m

illio

n pe

rson

s))

0%

2%

4%

6%

8%

10%

12%

Wor

k Fo

rce

Part

icip

atio

n R

ate

(%)

Work Force 103.97 105.86 106.39 109.94 111.95 113.83 Employed

93.72 93.96 95.46 99.93 102.55 104.87

Open unemployment 10.25 11.9 10.93 10.01 9.39 8.96 WF Participation Rate (%) 9.86% 11.24% 10.28% 9.11% 8.39% 7.87%

2004 2005 2006 2007 2008 2009

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DIAGRAM 7PRODUCTION OF FOOD

0

20

40

60

80

(mill

ion

ton)

2005 54.2 12.5 0.8084 2.2 1.8 6.9 2006 54.6 11.6 0.7476 2.3 2.1 7.5 2007 57.1 13.3 0.5925 2.6 2.1 8.2 2008 60.3 16.3 0.7765 2.8 2.1 8.7 2009*) 62.6 17 0.9245 2.9 2.2 10.5

Paddy (GKG) Maize Soybean Sugar Cane Meat Fish Products

*) Estimate

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DIAGRAM 8NET ENROLMENT RATES (NER)

AND GROSS ENROLMENT RATES (GER)

Puskesmas

94.12 94.30 81.22 85.22 88.68

49.01 52.20 56.22 60.51 64.28

14.62 15.00 16.70 17.25 17.75

95.1494.9094.48 96.18 92.52

2004 2005 2006 2007 2008 NER at elementary schoolsGER at junior high schools

GER at senior high schools GER at universities

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Posyandu Jamkesmas

Puskesmas,

DIAGRAM 9COMMUNITY HEALTH AND NUTRITION STATUS

66.2

307

28 35 70.7

228

18.4 34

Life Expectancy

Maternal Mortality Rate Prevalence ofMalnutrition

Infant Mortality Rate

Initial Status (2004)

Attained Target (2009)

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2.3. Challenges to National Development

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First

Second

Third

Fourth

Fifth

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Sixth

Seventh

Eight

Ninth

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Tenth

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CHAPTER IIIDIRECTIONS OF RPJPN 2005 2025

3.1. Vision and Mission of RPJPN 2005 2025

INDONESIA THAT IS SELF RELIANT, ADVANCED, JUST, AND PROSPEROUS

Self reliant:

Advanced:

Just:

Prosperous:

The eight National Development Missions

Realizing a society that has high morals, ethics, culture, and civilization,based on the Pancasila

Realizing a nation that is competitive

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Realizing a democratic society based on the rule of law

Realizing an Indonesia that is secure, peaceful, and united

Polri

Realizing development that is equitable and just

Realizing an Indonesia that is balanced and sustainable

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Realizing an Indonesia as an archipelago nation that is self reliant,advanced, strong, and that is based on the national interest

Realizing an Indonesia that has an important role in the internationalcommunity

The First RPJM (2005 2009)

The Second RPJM (2010 2014)

The Third RPJM (2015 2019)

The Fourth RPJM (2020 2025)

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DIAGRAM 10THE STAGES OF DEVELOPMENT IN RPJPN 2005 2025

3.2. Direction of the Second Medium TermDevelopment Plan (2010 2014)

RPJM 4(2020 2024)

RPJM 1 2009)

Reforming the NKRI,developing anIndonesia that issecure, peaceful,just, anddemocratic, withenhancedprosperity

RPJM 2(2010 2014)Memantapkanpenataan kembaliNKRI, meningkatkankualitas SDM,membangunkemampuan iptek,memperkuat dayasaing perekonomian

RPJM 2(2010 2014)Consolidating thereformed Indonesia,increasing quality ofhuman resources,capacity building inscience andtechnology,strengtheningeconomiccompetitiveness

RPJM 3(2015 2019)Consolidating overalldevelopment byemphasizingenhancement ofeconomic competitiveadvantage based onavailable naturalresources, qualityhuman resources, andcapability in scienceand technology

Realizing an Indonesiathat is self reliant,advanced, just, andprosperous, throughacceleration ofdevelopment in allfields, with aneconomic structurethat is solid based oncompetitive advantage

THE STAGES OF DEVELOPMENT IN RPJPN 2005 2025

(2005

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CHAPTER IVNATIONAL DEVELOPMENT POLICY IN 2010 2014

4.1. National Development Strategy and Policy4.1.1. Vision of Indonesia

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Bhineka Tunggal Ika

�“The Realized Indonesia that is Prosperous, Democratic, and Just�”

Prosperous People

Democracy:

Just

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4.1.2. Mission of Development

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Mission 1: Continuing Development towards a Prosperous Indonesia

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I - 33

Mission 2: Strengthening the Pillars of Democracy

I - 34

Mission 3: Strengthening the Dimension of Justice in All Fields

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4.1.3. Agendas of Development

Agenda I: Economic Development and Increase of Welfare of the People

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Agenda II: Enhancing Good Governance

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Agenda III: Upholding the Pillars of Democracy

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Agenda IV: Law Enforcement

Agenda V. Development that is Inclusive and Just

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kecamatansdesa kecamatan

kabupaten

4.1.4 The Development Targets

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Development Targets in the Economic Field to IncreaseWelfare

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Targets for the Strengthening of Democracy Development

Targets of Law Enforcement

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TABLE 1THE MAIN NATIONAL DEVELOPMENT TARGETS

OF THENATIONAL MEDIUM TERM DEVELOPEMT PLAN (RPJMN) OF 2010 2014

NO. DEVELOPMENT TARGETS

TARGETS ONDEVELOPMENT OFWELFARE OF THE PEOPLE

Economic1.

Education2.

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NO. DEVELOPMENT TARGETS

Health3,

Food4

Energy5.

Infrastructure

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NO. DEVELOPMENT TARGETS

TARGETS OF DEVELOPMENT OFDEMOCRACY

I - 47

NO. DEVELOPMENT TARGETS

DEVELOPMENT TARGET ON LAWENFORCEMENT

I - 48

4.2. General Policy Direction of National Development

4.2.1. General Policy Direction

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4.2.2. National Priorities

Priority 1: Reform of the Bureaucracy and Governance

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Priority 2: Education

I - 51

Priority 3: Health

I - 52

Priority 4: Reducing Poverty

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Priority 5: Food Security

Priority 6: Infrastructure

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Priority 7: Investment Climate and Business Climate

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Priority 8: Energy

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Priority 9: Environment and Management of Natural Disasters

Priority 10: Left Behind, Frontier, Outermost, and Post Conflict Areas

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Priority 11: Culture, Creativity, and Technological Innovation

First

Second

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Third

Fourth

Other Priorities

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4.3 Policy Directions in Development Fields

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4.4. Regional Development Directions and Policies

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Musrenbang

Musrenbang

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Renstra

4.4.1. Regional Development of Large Islands

I. Development of the Sumatra Region

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II. Development of Java Bali Region

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Jabodetabek

III. Development of the Kalimantan Region

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IV. Development of the Sulawesi Region

I - 66

V. Development of the Nusa Tenggara Region

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VI. Development of the Maluku Region

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VII. Development of the Papua Region

I - 69

4.4.2 Sea Region Development Strategy

I. Sumatra Seas Development Area

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II. Malaka Strait Seas Development Area

I - 71

III. Java Seas Development Area

IV. Makassar Buton Seas Development Area

I - 72

V. Banda Maluku Seas Development Areas

kepala burung

4.4.3. Area Development

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8.

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CHAPTER VMACRO ECONOMIC FRAMEWORK

5.1. The 2009 Economic Condition

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I - 76

I - 77

5.2. The Economic Prospect in 2010 2014

5.2.1. Increasing People�’s Welfare Through Sustainable Economic Growth

TABLE 2ESTIMATED ECONOMIC GROWTH

2010 2014(in%)

2010 2011 2012 2013 2014Average20102014

Economic Growth

Expenditure Side

Production Side

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2010 2011 2012 2013 2014Average20102014

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5.2.2. Firm Economic Stability

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I - 81

5.2.3. An Inclusive and Fair Economic Development

Puskesmas

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5.2.4. Investment Requirements and Policies on National Development Fund andUtilization

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2.

3.

4.

5.

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Syariah

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Zakat

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zakat zakatzakat

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TABLE 3MACRO ECONOMIC FRAMEWORK

2010 2014Medium Term Projection

2010 2011 2012 2013 2014Economic Growth

Expenditure side (%)

Production side (%)

GDP per Capita

Economic Stability

Balance of Payments

State Finance *)

Unemployment and Poverty

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5.2.5. Funding through Transferring to Regions

Dana Perimbangan Dana Otonomi Khusus/OtsusDana Penyesuaian

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Balancing Fund (Dana Perimbangan)

Dana Bagi Hasil Dana Alokasi UmumDana Alokasi Khusus

Policy Direction for Allocation of the Revenue Sharing Fund (DBH)

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Policy Directions in Allocation of the General Allocation Fund

Policy Directions on Allocation of the Special Allocation Fund

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Policy Directions for Allocation of the Special Autonomy Fund

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CHAPTER VICLOSING REMARKS