Strategic Planning

Promoting growth and wellbeing through business, trade and investment

As Indonesia’s economy becomes increasingly integrated in world markets, and as its domestic economy grows in size and diversity, improved strategic planning is needed for well-focused and adaptable policy-making in the area of trade and investment.

The EU-Indonesia Trade Cooperation Facility project (TCF) is working with its partners in BAPPENAS and that organisation’s Directorate of Trade, Investment and International Economic Cooperation (Dit.PIKEI) to develop a powerful, customised economic forecasting and policy impact tool for use at global, national and provincial levels.  This tool will enable policy makers to analyse the impact of policies over several years and to make any necessary adjustments. The work is supported by policy research, for example, the identification of sectors and companies at regional level with most potential for exporting.

The focus areas for our support to Bappenas and Dit. PIKEI in 2016 are:

Economic Modelling and Forecasting

We have been working with Bappenas since the start of the project to create a powerful, widely-scoped and highly-functional economic model of trade and investment capable of working at global, national and provincial-levels. We will continue with the development of this forecasting tool in 2016 and use it to highlight major trends affecting Indonesian trade and investment.

In part as a response to the demands of the new President and government, we have started work on building into the  model the capacity to present and explore policy impact scenarios in order to give perspective to the timing and impact of policies. This work will be the focus of the project’s final work plan with the aim of producing a policy impact outlook report every six months, as well as regular reports on topics of interest.

In addition, the model will facilitate the preparation of research and working papers, which also form a part of the final work plan.

Taken together, these actions will greatly extend the range of the economic model, incorporating policy impact, and enabling it to be used more widely for research and the preparation of policy papers, as well as helping to consolidate learning and capacities in trade and investment policies and practices.

Capacity Building in Trade and Investment Strategic Planning

We have been providing support to Bappenas in capacity building around trade and investment policy and practices since the start of the TCF project,  exposing officials and staff to the most recent and relevant practices. We will continue this capacity building programme into 2016 with the aim of strengthening  their knowledge of topics related to strategic planning of trade and investment, and developing their understanding of policy making.

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