REPUBLIKA.CO.ID, DEPOK - An expert from Faculty of Economiy at University of Indonesia, Rizal E Halim said that Indonesia's trade balance deficit would remain high next year. Oil and gas imports will also increase and shadow current account deficit.
The director of Lingkar Studi Efokus said that leading commodity exports could not find their best position because Indonesia still required two to three years to complete its physical infrastructures and regulations.
"Demands are high due to rising incomes, while domestic supply is inadequate. Therefore, import remains an option," Halim said.
The practice of rent seeking economy still hampers national competitiveness, especially in strategic sectors, such as energy, plantations, telecommunications and food. Halim said that issue of legal certainty made public confidence in law enforcement currently at its lowest level.
Bureaucratic machine has not given the best performance, particularly the balance of bureaucratic and budget allocation of public services. Synergy between ministries/institutions and non-ministries/institutions has not met market expectations.
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