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Prosperity has not only physical and material dimensions but also spiritual and immaterial dimensions. The completion of material will have no impacts on happiness if our body is threatened oroursoul isdepressed, dry and suffered. Spiritual and immaterial dimension of prosperity will be perfect if we feel peaceful and fair situations. Therefore, the development that creates prosperity means the development that creates peace andjustice.To provide prosperity for all the people of Indonesia, hard and smart work should be done by all components of the nation. Agenda for improving people's prosperity has 5 (five) main targets and priorities of development.

Target & Priorities:
1. First Target
2. Second Target
3. Third Target
4. Fourth Target
5. Fifth Target


First Target

The First Target: the reduced total number of the poor Population, so as to become 8,2% by 2009 and the creation of employment opportunities, that will be able to reduce open unemployment to become 5,1% by n 2009, and supported by the continued maintenance of macro economic stability. Poverty and unemployment are overcome by the economic development strategy that encourages that desired quality of growth and that takes into account the dimension of equity through the creation of a sound business climate.
To attain this target, the following development priorities and policy directions have been formulated:

1. Alleviating Poverty, through policies that are directed at respecting, protecting and meeting the basic rights of the poor people that encompass the rights for food, health, education, Job, housing, clean water, land, environment and natural resources, sense of security, and the rights to partibipate in the formulation of public policies.

2. Increasing Investment and Non-Oil/Gas Export,
through policies that are directed at:
a. Eliminating the high cost economic, among other by simplifying the Investment licensing procedure,
including forthe DKM (Small and Medium Enterprise).
b. Creating legal certainty, that can reduce business uncertainty, including the reduction of overlapping policies
between the central and regional governments and among sectors.
c. Improving the Investment Institution so that these become more competitive, efficient, transparent, and non-
d. Simplifying tax and customs administration through taxand customs reforms.
e. Creating the right Investment incentives in the efforts to distribute more Investment to regions outside Java,
especially in the Eastern Part of Indonesia.
f. Encouraging the restoration of the banking intermediation function.
g. Increasingtheavailabilityofinfrastructure.
h. Revitalizing the export promotion institution; increasing at the Company level support Service.
i. Promoting trade financing facilities, and
j. Strengthening anti-dumping safeguard institution.

3. Enhancing Competitiveness of the Manufacturing Industry through the policies that are
directed at:
a. Increasing the utilization of installed capacity.
b. Strengthening the industrial structure.
c. Strengthening the production base.
d. Enhancing competitiveness with the emphasis on Industries that absorb larger number of workers, that
meet domestic demand.
e. Having export potential and that process natural resources in the country.

4. Revitalization of agriculture, in a board sense, that is directed at the greater security of food resilience, enhancing competitiveness, diversification, enhancing productivity and value-added of agriculture products, livestock breeding, estate product, fisheries and forestry in order to enhance the welfare of farmer and fisherman through:
a. Increasing the capabilities of farmers and fisherman and Strengthening the supporting institution.
b. Securing food resiliency.
c. Increasing the access of farmers and fishermen to production resources, such äs technology, market
Information, processing and capital sources.
d. Improving the business climate in the context of increasing business diversification and expanding business
e. Increasing managerial capacity and entrepreneurial competence among businessmen engaged in agriculture
and fisheries.
f. Inducing the increased quality Standards of commodities, reforming and promoting industriesthat process
agricultural and fisheries product in order to increase competitiveness and value-added.
g. Increasing marketing networks of products fort the expansionof marketing channels, and
h. Increasing the utilization fishery resources and optimizing the utilization of natural resources, developing
crop forests and non-timber forest products, in order to support economic growth while still maintaining the
conservation of natural resources and the environment.

5. Empowerment of Cooperatives, Micro, Small and Medium Enterprises, through policies that are
directed at the:
a. Promotion of small and medium enterprises (UKM) so that these enterprises can give a significant
contribution to economic growth, employment creation and enhancementof competitiveness.
b. Promotion of micro scale enterprises in the context on increasing the income of the low income bracket
c. Strengthened Institution by applying the principles of good governance and taking into account gender
aspects by improving the business climate and simplifying licensing procedures, expanding access to funding
sources, specifically the banking System, expanding and increasing the quality of supporting institution that
carry out the intermediation function as the providers of Services forthe promotion of business
undertakings, technology, management, marketing and Information.
d. Expansion of the business base and opportunities and for promoting new entrepreneurs that have a
comparative advantage, including efforts for increasing exports.
e. Increased activities of the UMKM (Small and Medium Scale Enterprises) äs suppliers of goods and
Services to the domestic market, in particular for meeting demand of the people at large, and
f. Increased quality of the cooperative institution in accordance with the cooperative identity.

6. Enhancing Management of the BUMNs
(State-Owned Enterprises), in the context of increasing
the performance and competitiveness of the BUMNs, through policies that are directed at continuing the
restructuring of the BUMNs so äs to become more effective in accordance with their ,

7. Enhancing Capability in Science and Technology Capability, through policies that are directed at:
a. Enhancing the focous and capacity of research and development in science and technology.
b. Accelerating the process of diffusion and utilization of science and technology products.
c. Strengthening the science and technology institutions.
d. Creating the innovative climate in the form of incentives.

8. Improving The Manpower Climate, by promoting a flexible labor market policy and by reforming
industrial relations, that reflect the principle of justice and that is conduciveto increasing productivity
and innovation.

9. Consolidating Macro Economic Stability, that is directed at maintaining macro economic stability
that has already been attained by providing greater room for maneuver for promoting economic growth.
In this respect, the efforts pursued, encompass:

The formulation of the APBN (National Government Budget) with the objective of restoring the fiscal capability to become one of the effective economic Instruments for creating employment opportunities
through the Stimulation of a sustainable and employment creating economic growth.

Promoting a management strategy for foreign loans äs a Supplement for the financing of development, on the basis of the principle of an efficient management and that enhances the capability to repay.Enhancing coordination of fiscal and monetary policies between the government and Bank Indonesia by still maintaining their respective roles, and
d. Enhancing efforts for the restructuring of financial institutions and bank in enhancing their
intermediation role to the production sectors.

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Second Target

The Second Target: The reduced inter-regional gaps that will be reflected in the increased role rural areas äs the basis of economic growth in order to be able to increase the welfare of the rural population; the increase development activities in left behind areas; the increased development of areas that is induces by the competitiveness of the areas and by selected product of the areas; and the enhanced balance in the growth and development among large, moderate and small metropolitan urban areas that takes into account the synergy in the utilization of spaceand land layout.

To attain this target, the following priorities and policies directions, have formulated:

1. Rural Developments, by promoting the diversification of rural economic activities; increasing the promotion and marketing of agricultural and other rural products; expanding access of the rural population to productive resources, to public Services and to markets; empowering the rural population by increasing their quality, by strengthening the institutions and social capital of the rural population; increasing the welfare of the rural population and minimizing the vulnerability risk; and by developing activities in agricultural cultivation and non-agricultural undertakings that is environment friendly and are sustainable.

2. Reducing Inter-Regional Development, by:
a. Accelerating of developmentand growth of Strategie and fast growing areas, that thus far have not yet optimally grown, so äs
to be able to become the engine of growth for left-behind areas in its vicinity within one synergic "economic development

b. Enhancing the concern of the government for promoting left-behind and remote areas, so that these areas can grow and
develop faster and will become able to catch up with other areas in their development.

c. Promoting areas that are border by changing the development policy direction that thus far had tended to be inward looking to become outward looking, so that these areas can function äs the gateways of economic and trading activities with neighboring
countries, through the prosperity approach äs well äs the security approach.

d. Attaining greater balance in the growth and development among large, medium and small urban areas, hierarchically in a
"national urban development system". Increasing the links of economic activities that are found in rural areas with those found in urban areas.

f. To make operational the "Space Layout Plan" (Rencana Tata Ruang/RTR), in accordance with the planning hierarchy
(National-RTRW, the Island-RTRW, the Provincial-RTRW, and District/Municipality-RTRW) äs the basis for coordination and
synchronization of development among sectors and among areas.

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Third Target

Third Target: The increased quality of man, that in a comprehensive manner is reflected in the improved Human Development Index (IHD) and in the increased understanding and practice of religious teachings.
In order to attain this target, the following priorities and policy objectives have been formulated:
1. Increasing access of the people to quality education.
2. Improving access of the people to improved quality health Services.
3. Increasing social security and welfare
4. Developing population matters and good quality small family and the youth and Sports
5. Increasing the quality of religious life

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Fourth Target

The Fourth Target: the improved quality of the environment and in the management of natural resources, that are oriented to mainstreaming of the principle of sustainable development in all development sector.
For attaining this target, the development priority is place on improving the management of natural resources and conserving quality of the environment, through policies that are directed at:
a. Managing natural resources for being utilized in an efficient, just and sustainable manner that is supported by reliable Institution and strict law enforcement.
b. Preventing the occurrence of damaged natural resources and a more serious degradation of the environment, so that the rate of degradation and pollution will be reduced.
c. Restoring natural resources and the environment that are in degraded condition.
d. Preserving natural resources and the environment that are still in good condition for being utilized in a sustainable manner, and enhancing their quality and Potentials, andEnhancing the quality of the environment.

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Fifth Target

The Fifth Target: the improved infrastructure that is indicated by the increased quantity and quality of various facilities that support developments. For attaining this target, the priority is placed in the acceleration of infrastructure development.

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