Statement by H.E. Ambassador Dian Triansyah Djani Permanent Representative of Indonesia at the High-Level Segment of 58thth Session of the UNCTAD Trade and Development Board
September 12, 2011 Posted under Economy, Development and Environment
Dr. Supachai Panitchpakdi,
Let me begin by extending my warmest congratulation to you Mr. President, and members of your bureau, for your election. I am of the strongest conviction that under your able leadership and constructive approach we will strengthen our cooperation in building consensus and advancing development. I also wish to assure you of the full support of my delegation for the successful conclusion of this Session.
Allow me also to express our appreciation to your predecessor, Ambassador Luis Manuel Piantini, for his wisdom and leadership in presiding at the helm of the TDB over the last period.
Before proceeding further, I wish to align myself with the statements delivered by Lesotho on behalf of the G-77 and China, and by Thailand on behalf of the Asian Group. Furthermore, I also wish to commend the UNCTAD Secretariat for the excellent work and insightful assessments that lead to the successful publication of UNCTAD’s Trade and Development Report 2011.
In light of the current global situation, the convening of this session is timely as it provides us with valuable opportunities to identify challenges and threats and to discuss available options at our disposal in bracing for the potential impacts of the currently volatile situation.
My delegation is pleased to note that, as the UNCTAD’s Report suggested, the international community, through its collective efforts, has managed to generate a global-wide campaign of counter-cyclical policies which managed to restore the global financial stability, and thus saving the world economy from the brink of collapse. In fact, developing countries have enjoyed a steady trend of recovery ever since, in large part due to their positive domestic-driven demands.
For Indonesia, the valuable lessons learned in overcoming the financial crisis of 1997-1998 has put us in a relatively favorable stance to absorb the impact of the recent financial crisis, among others, through a prudent fiscal management, enhancing conducive environment for trade and investment, and by carrying out an economic policy that is Pro-Growth, Pro-Job, Pro-Poor, and Pro-Environment.
In fact, at the height of the crisis in 2007-2008, Indonesia managed to achieve growth rate of 4.3 percent, which has been steadily increasing to up to 6.4 percent in 2011. Such growth reflected also in the steadily reduced level of unemployment, from 9.1 percent in the second half of 2007 to 6.8 percent in the first half of 2011.
In terms of social welfare, Indonesia also managed to reduce the number of population living below the poverty line from the previous number of 32.53 million in 2010, to 30 million or 12.5 percent of the total population by the end of 2010. In 2011 until 2012, Indonesia will continue its efforts to reduce the percentage of population below the poverty lines up to 10.5 – 11.5 percent of the total population.
The next round to maintain the path of recovery is yet to be won. In this regard, Indonesia shares UNCTAD’s concern as stated in the 2011 Trade and Development Report, that we need to maintain the growth momentum currently enjoyed by developing countries, while ensuring that the current economic recovery does not stalled, including, among others, due to instability of price of commodities caused by disruptive volatile capital flows.
Indeed, the current unpredictable economic situation demonstrates that the post-crisis recovery phase remain fragile and vulnerable, and potentially undermining the rate of growth and development in developing countries, especially in LDCs, and further jeopardizing the attainment of the Millennium Development Goals (MDGs) targets.
We therefore need to remain vigilant and alert for the possibility of a worst-case scenario, while simultaneously devise strategies to ensure the unhindered continuation of the recovery process. For its part, Indonesia has launched a series of programs under the Master Plan for the Acceleration and Expansion of National Development.
Several priority areas are set up to encourage the continuity of domestic-driven growth. These include bureaucratic reform and good governance, education, health, poverty alleviation, food security, infrastructure, investment and business climate enhancement, environment and disaster management, as well as culture, creativity, and innovation. In addition to that, Indonesia is also focusing on the empowerment of the under-developed, and peripheral regions throughout Indonesia.
The Government is also taking steps to curb the threat of volatile capital flows through several monetary strategies, including managing securities by utilizing funds from the annual state budget surplus.
After this 58th Session of the Trade and Development Board, we will have to focus our attention and effort for the preparation of the 13th UNCTAD Conference in Doha, Qatar, 2012. My delegation views that this TDB session is invaluable to increase awareness and provide guidance, and to identify a list of issues that are of common interests, to be elaborated further during the Doha Conference.
Indonesia attaches great importance toward the forthcoming Doha Conference to provide direction and solution, as well as increase the level of cooperation among member countries, which will ensure growth and development amidst the increasingly challenging economic climate. Particularly, when thw WTO Doha Round has yet to come up with successful outcome and still in stagnant mode.
I believe the time has come for us to focus our efforts, close our ranks, and march in unison, to advance our common goals in achieving a better future and prosperity for our next generations.
Please allow me to conclude by reaffirming Indonesia’s support for UNCTAD to continue its commendable works, not only in integrating their member countries to the world economy, but also - in the long run- to pave the groundwork for enabling its member countries to transform itself to become the new and vibrant economic powerhouses.
I thank you.
Geneva, 12 September 2011