Environment and Economy of Indonesia



Indonesia is the country which has a lot resource. Indonesia also is the country which located in strategic positions. It's one of the most countries which has shape the islands. Those positions make easier the trade of Indonesia. There are a lot of resources which can found in Indonesia. As a tropic country Indonesia is also well-known as one of the most country which has oil resource.  The Indonesian archipelago has been an important trade region since at least the 7th century.  Indonesia’s environment has a good prospect for the economy. But, it seems useless now because until now the citizens can not feel the benefits from that.
            Indonesia's high population and rapid industrialization present serious environmental issues, which are often given a lower priority due to high poverty levels and weak, under-resourced governance. Issues include large-scale deforestation (much of it illegal) and related wildfires causing heavy smog over parts of western Indonesia, Malaysia and Singapore; over-exploitation of marine resources; and environmental problems associated with rapid urbanization and economic development, including air pollution, traffic congestion, garbage management, and reliable water and waste water services.Deforestation and the destruction of peat lands make Indonesia the world's third largest emitter of greenhouse gases. Habitat destruction threatens the survival of indigenous and endemic species, including 140 species of mammals identified by the World Conservation Union (IUCN) as threatened, and 15 identified as critically endangered, including Bali Starling,  Sumatran Orangutan, and Javan Rhinoceros. Much of Indonesia's deforestation is caused by forest clearing for the palm oil Industry, which has cleared 18 million hectares of forest for palm oil expansion. Palm oil expansion requires land reallocation as well as changes to the local and natural ecosystems. Palm oil expansion can generate wealth for local communities if done right. If down wrong it can degrade ecosystems and cause social conflicts.
          Actually, the environment of Indonesia very supports the trade of them. Indonesia has a lot natural resources (gas, oil, palm, gold and so on). Before Indonesia got the independence, Netherland and Japan was very interested to take the resources from Indonesia because Indonesia has a lot of it. It’s because Indonesian people can’t manage the resources as well.  Indonesia as the owner of all resources but the foreign country as manager, so even though we have everything, we still can’t manage it so they feel so free to explore the resources. For example PT Freeport (golden company), its located in Indonesia but the owner of the company is the foreign people not Indonesian people. Indonesian people just became labor and worker, so even though it has big profit but the profit from Freeport only could feel by that foreign people.  If the resources could manage as well, Indonesia might be doing the large exports. To make it comes true is upgrading our human resources. Because in Indonesia the most factor which make Indonesia being a development country is the human resources.
The strength and weakness of Environment in Indonesia
The strength: as a tropic country, Indonesia has lot natural resources. There’s so many things which can produce to be a worth things. The country has extensive natural resources, including crude oil, natural gas, tin, copper, and gold. Indonesia's major imports include machinery and equipment, chemicals, fuels, and foodstuffs. And the country's major export commodities include oil and gas, electrical appliances, plywood, rubber, and textiles. If we can produce or manage those things, we can reach more profit from that.
The weakness: Nowadays, the half environment of Indonesia has destroyed; its causing the economy of Indonesia was stuck. For example we look on lapindo’s case, it has wasted the income of the country, the income became less but the case still exists. It was disturbing the trade of Indonesia, Lapindo Company is located in central java where the batik (biggest culture of Indonesia which famous in the world) was produced.  There’s so many batik factory can’t producing anymore because their factory was full of lapindo’s mud.
Another one is the  traffics and flood in our capital, Jakarta. Everyday the people who live in Jakarta might be feels stressed out because of it. Jakarta is the capital and the central economy of Indonesia. Jakarta, the capital of Indonesia and the country's largest commercial center. Indonesia was being the biggest exports before the 1960s. but In the 1960s, the economy deteriorated drastically as a result of political instability, a young and inexperienced government, and economic nationalism, which resulted in severe poverty and hunger. By the time of Sukarno's downfall in the mid-1960s, the economy was in chaos with 1,000% annual inflation, shrinking export revenues, crumbling infrastructure, factories operating at minimal capacity, and negligible investment. Following President Sukarno's downfall in the mid-1960s, the New Order administration brought a degree of discipline to economic policy that quickly brought inflation down, stabilized the currency, rescheduled foreign debt, and attracted foreign aid and investment. Indonesia was until recently Southeast Asia's only member of OPEC, and the 1970s oil price raises provided an export revenue windfall that contributed to sustained high economic growth rates, averaging over 7% from 1968 to 1981. Following further reforms in the late 1980s, foreign investment flowed into Indonesia, particularly into the rapidly developing export-oriented manufacturing sector, and from 1989 to 1997, the Indonesian economy grew by an average of over 7%. Now, If we want to go to the office which has distance 5-10km it takes 2-4 hours. Their time was wasted in the way without getting anything from that activities. That case has wasted much income of government. Until now , haven’t any solution yet to solve it. 
There are many cases of environment which disturbed our trade activities. Because of that indonesia being the trade deficit. But if we can maximizing all resources of from the environment maybe our exports will be higher than our imports (as known as trade surplus) seems like netherland, new zealand,US, and so on.As the society we should keep our environment. We can starts it from the little things. Do not ever destroy our environment within anything because it will make Indonesia become poor in the future.
The government should be making the solution of all.  First the government have to make rules for the nasty citizens who destroy our environment. They should be receive the punishment after they do that. The other policy of government is the government must upgrading the quality of our human resources. Human resources is very important factor at all, because even though we have everything but the human resources didn’t have skills it just useless. To manage it as well we should upgrades the human resources.  Then our country will be more productive to make our income increase and our payable in the World Bank will be decrease. From now we have to starts to keep and balancing our environment so we can take more advantages from it.
let’s make our environment better than before and maximizing the resources as well. if its already done, we can get more than one advantages from it. First, our income will be higher and it might be reach more profit for the country. Second,the environment will be balance and no more crowded in Indonesia. 


Essay Source :          
 
Name : Ayu Riwandasari
NPM :120110120180
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