Indonesia - Recent developments, short-term prospects and development issues
Kutcher, G. | Scandizzo, Pasquale L.
Indonesia's imaginative and cost-effective family planning programme has succeeded in reducing the overall population growth rate, which should ease population pressures in Java and Bali. However, earnings from oil and gas exports are likely to stagnate, and volume expansion and price improvements of other exports, particularly timber and rubber, are likely to be small. In the coming years, Indonesia will be facing greater challenges in its aim to provide adequate growth in incomes, sufficient employment, and acceptable equity. Food production will be a critical factor, and aims should include: increased consumption of non-foods; continued rice imports, but a smaller share of the world market; increased wheat imports; and promotion of secondary food crops. The government's program to expand transmigration should make much better use of land and labour resources, which will be important to the national food strategy. Other labour-intensive activities will be promoted. The foreign aid community, led by IGGI, can provide resources needed in addition to the domestic resources available.
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