Comparative charts of Indonesian economic development indicators, or why Malaysia is just better.
From the World Bank’s ‘World Development Indicators’.
A possible question from the data might be – why is Malaysia such a relative outlier? Among others…
Indonesia IS the highest internet user. We should not forget how large the population of Indonesia is. The fact that the percentage of internet user is low shows the huge potential Indonesia has. The problem that Indonesia has to solve first, is complex bureaucracy & corruption (how many days needed to start a business), health + education for all, cheap internet availability to remote areas, lack of energy source.
The latter point is one of the most important one. Indonesia is lack of electricity. So big the problem has become, that electricity blackout is a common phenomenon even in big cities, even in the capital city Jakarta.
Indonesia democracy is like an open kitchen, you see your food being made. In Suharto’s Indonesia you never say your food being made. I worked in Indonesian Public Work’s Department during the Suharto era, and it was dysfunctional, and this was one of the better government departments. But most Indonesian don’t see what was going on, now because of great press freedom they do.
I think the graphs paint a pessimistic picture. Indonesia is not an easy country to govern. Archipelago countries are difficult to govern, even food self sufficiency is difficult, because of the lack of major river systems. At the rate things are going, I would not be surprised the average Indonesian will be richer than the average Thai in 10 years time. In 10-15 years, there will be far fewer Indonesian in Malaysia.
If you look at other countries in SEA, outside of Singapore, I think Indonesia’s prospects are good. Only Indonesia GDP growth rates have recovered to the levels prior to 1998. All the other SEA countries have much more serious problems than Indonesia. Vietnam, while has 6-7% growth, they have serious macroeconomic problems, high inflation (+20%) and negative balance payment situation. Malaysia is caught in the middle income trap and serious brain drain problems. Thailand is wrecked by chronic political instability, low labor productivity (caused in part by importing cheap labor from Laos, Cambodia and Burma) The Philippines, grow at about 4-5% a year, but its fertility rate is 3.1 compared to Indonesia 2.2, which means that per capita income growth is +4% a year compared to 1.5% a year in the Philippines. Its a huge difference, right now Indonesian are 50% richer than the average Filipino, in ten years time, Indonesia per capita income will be more than x2-2.5 that of the Philippines. Indonesia’s per capita income in ten years time will be 30% lower than Malaysia.
There are alot of things the Indonesians politicians have done that people don’t give them credit particularly in the first five years after the overthrow of Suharto. They passed alot of serious laws that laid the foundation of Indonesian democracy. The political system looks like SNAFU, but the decentralization policies were needed, and the electoral system was well thought out. They weakened the Presidency, but made sure through the electoral system that there would be relatively few political party in Parliament (8-9 right now compared to 40-50 in the Philippines). They also stuck to the 1945 Constitution and made it relatively easier to amend (requiring only 60% of the DPR), this is compared to the constitutional mess you have in Thailand.
Because of this the Indonesian government does gets obscured by scandals and messy coalition politics, but Indonesia has achieved much in the last 10 years.
1) Removing the Army for politics.
2) Ending most of the discrimination against Chinese Indonesians
3) Investing alot more on education than in the past. Spending three times as much as a % of GDP on education than it did during the Suharto period.
4) Steady increases in foreign investment
…and the free press of course.
that and the penguins.
Malaysia is not a very good country to compare with.
It’s a country steep in waste, non productive youths, huge civil service to population ratio, 8 sultans, 1 raja and 1 Agung and 4 governors, 13 chief ministers, many, many ministers, deputy ministers and all these just to accommodate every racial group, culture and tradition.
And a haphazard education system. Only half the country speaks the national language. A tourist may think that Malaysia is part of china in some areas.
It’s a country full of refugees and migrant workers who dump rubbish all over the place. And now, it’s invaded by middle easterners who acts like gangsters and enter using student visas. Of all the middle easterners, Iranians seems to be ok, like the Koreans.
Where I live in KL, the locals seems to be a minority.
Indonesia suffer none of these problems. And communicate in the same language.
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This is my question:
How is it possible to have more than 100% primary school graduation?
I wouldn’t have thought it was possible to graduate twice or do something else that would cause some students to be double-counted.