The Economic Growth and Development between Indonesia-Russia

A. Introduction

One of the indicators that are very important in analyzing the economic development taking place in a country is economic growth. Basically, economic development and economic growth implies different meaning. Economic development is generally defined as a process that causes the increase in per capita real income of the population of a country in the long term that is accompanied by the institutional system. The economic growth is defined as the increase in GDP or GNP, regardless of whether the increase was greater or less than the rate of population growth, or whether changes in economic structures occur or not (Arsyad, 1999: 11, 13).

Economic development is closely related to economic growth. Economic growth according Sadono Sukirno have meaning in economic development activities that led to the goods and services produced within the community to grow and increase the prosperity of society (Sukirno, 2002).

Economic development is also used to refer to economic growth in developing countries or who are building (Witjaksono, 2009). Index or benchmark to observe the development or growth of the economy based on national income, inflation rates, unemployment or employment and balance sheet payment and foreign exchange. Through these indicators, the pace of economic growth can be measured.

The rapid development and public awareness that change has affected economic development, not only a local but became international. The global economic crisis has accelerated the shift in global economic power. Current condition of the global economy has experienced a slowdown. International Monetary Fund (IMF) already lowered its forecast of world economic growth in 2015 from 3.5% to 3.3%.[1]

B. Discussion

1. Identification State (location, population, system of government, economic system and map) Indonesia

a. Location

Indonesia is an archipelagic country in the form of republic and is located in Southeast Asia. Indonesia has approximately 17.000 thousand islands with a land area of 1.922.570 km² and 3.257.483 km² of water area. Based on its geographical position, Indonesian state has boundaries: to the North with Malaysia, Singapore, Philippines, and South China Sea. To the south side is bordered by Australia and Indian Ocean. To the west is bordered by Indian Ocean. While the east with Papua New Guinea, Timor Leste, and Pacific Ocean. The geographical position of Indonesia consists of astronomical and geographical location of different understanding and views.

Location of astronomical of a country is layout position based on latitude and longitude. The latitude is an imaginary line that circles the earth’s surface horizontally, while the longitude is an imaginary line connecting the North Pole and South Pole. Location of astronomy Indonesia lies between 6°LU – 11°LS and 95°BT – 141°BT. Based on the location of astronomy, Indonesia traversed by the equator, the imaginary line on a map or globe that divides the earth into two equal parts. Equator or equatorial located at latitude 0°.

Geographical location is the location of an area or region seen from the reality on the earth’s surface. Based on the geographical location, Indonesia islands are among Asian and Australia continent, as well as between Indian and Pacific Ocean. Thereby, the area of Indonesia is at the intersection, which is of significant importance in relation to the climate and the economy.[2]

b. Population

The population of Indonesia is currently 255.993.674 inhabitants and was ranked 4th in the world after China, India, and the United States. Data of the population number from CIA World Factbook in July 2015 are seen in total population by age group:

0-14 years: 25.82% (male 33,651,533 / female 32,442,996)
15-24 years: 17:07% (male 22,238,735 / female 21,454,563)
25-54 years: 42.31% (male 55,196,144 / female 53,124,591)
55-64 years: 8:18% (male 9,608,548 / female 11,328,421)
65 years and over: 6.62% (male 7,368,764 / female 9,579,379) (2015 etc.)[3]

Based on the news in Kompas, 2050 or 35 years ahead, Indonesia’s population will be over 300 million people.[4] Jokowi said that Indonesia’s population rate of 1.3 percent, meaning that every year there is an additional 3 million people.[5] The composition of urban or rural population of Indonesia in 2015 showed more in the countryside, which is 128.5 million. While in large urban areas is just as much as 126.3 million. Noted, population growth in urban areas reached 1.75% while 0.52% in rural areas.[6]

c. System of government

Based on the 1945 opening paragraph IV which reads, “that the independence of the Indonesian nation was compiled in the Constitution of the State of Indonesia which are formed in an arrangement of the Republic of Indonesia the sovereignty of the people. “Pursuant to Article 1 Paragraph 1 of the 1945 Constitution, which reads, “Indonesia is a unitary state in the form of a republic.”

It is concluded that the form of Indonesia state is a unitary, while the form of government is Republic. Besides, the form of the unitary state and the republican form of government, the President of Indonesian Republic has power as head of state and a head of government. This was based on Article 4 paragraph 1, which reads, “The President of Indonesian Republic holds the power of government according to the Constitution.” Thereby, the system of government in Indonesia adheres to the Presidential Government System.[7]

d. Economic system

According to the 1945 Constitution, Indonesia economic system included in Articles 23, 27, 33 & 34. Economic Democracy chosen because it has the positive traits that were (Suroso, 1993) the economy is structured as a joint venture based on the principle of family. Normatively Indonesia’s economic system ideal basis is Pancasila and the Constitution of 1945. Thereby, Indonesia’s economic system is an economic system oriented to the Almighty God (the enactment of ethics and religion moral, not materialism); Fair humanity and civilized (not familiar with extortion or exploitation); the unity of Indonesia (enactment of togetherness, family principle, socio-nationalism and the socio-democracy in economic); Populist (prioritizing the economic life of the lives of many people); and Social Justice (equation/emancipation, prosperity of major public – not the prosperity of individuals). Indonesia’s current economic system is a system of economic democracy that the national economic system that embodies the philosophy of Pancasila and the 1945 Constitution which based on family and mutual cooperation of, by and for the people under the leadership and supervision of the government. This economic system has the ideal basis of Pancasila and the 1945 constitutional basis.[8]

e. Map

Source: http://www.divetheworldindonesia.com/map-of-indonesia.php

2. Identification State (location, population, system of government, economic system and map) Russia

a. Location

Russia or formally Russian Federation is located in the northern part of Eurasia. Russia, the largest country of the world covers a total area of 17,098,242 sq. km. and shares its land boundary with fourteen neighboring countries. China, Mongolia, North Korea, Kazakhstan in the south, Georgia, Azerbaijan in the southwest, Norway, Finland, Lithuania, Estonia and Latvia in the northwest and Poland, Belarus and Ukraine in the west. It is bounded by Barents Sea, Kara Sea, Laptev Sea and East Siberian Sea in the north. Russia has 37,653 km long coastline. The latitudinal and longitudinal extent of Russia is 41° and 82°N and 19°E and 169°W respectively.[9]

b. Population

About 80 percent of Russia’s population consists of Russians ethnic, who are descendants of the Eastern Slavs. Slavic probably first is appeared in Europe about 2.000 years ago. They were then divided into west and south and east of branches. East Slavic forms a majority. However, Russian also has a number of non-Slavic minorities. The second largest ethnic group includes people of Turkish origin; examples are Tatars, Chuvash, and several smaller groups in Siberia. People in the third largest group, Finno-Ugric, concentrated along the border with Finland, in the eastern plains and the Ural Mountains, as well as in northern Siberia.[10] The Russian Federation Population in 2016 is 143.439.000.

Source: https://populationpyramid.net/russian-federation/2016/

c. System of government

The present Russian government inherited a system of government of the Soviet Union which has collapsed in the 1990s. The Russian government is born as a result of the October 1917 revolution. The characteristics of the Russian government, namely[11]:

  1. Dictator (authoritarian)

The government created the law and its implementation without the participation of the people. Just create a single party that is communist party, which dominates all activities and decisions; as well prohibit any other party.


Sumber:

[1] http://finance.detik.com/read/2015/07/14/072407/2968222/4/brasil-dan-rusia-alami-krisis-parah-lebih-berat-dari-indonesia

[2] Rauf, Buyung Nazer. Akan Kita Apakan Kawasan Perbatasan Negara Indonesia. http://penataanruang.pu.go.id/bulletin/upload/data_artikel/edisi%203%20akan%20kita.pdf

[3] https://www.cia.gov/library/publications/the-world-factbook/geos/id.html

[4] http://www.negeripesona.com/2015/10/jumlah-penduduk-indonesia-dan-daftar-5.html

[5] https://m.tempo.co/read/news/2016/01/14/173736151/tiap-tahun-penduduk-indonesia-bertambah-3-juta-orang

[6] http://www.hidayatullah.com/berita/nasional/read/2015/11/20/83632/jumlah-pendududari-perempuan.html

[7] http://www.zonanesia.net/2014/10/sistem-pemerintahan-indonesia-sekarang.html

[8] http://www.zonanesia.net/2014/11/sistem-ekonomi-indonesia-saat-ini.html

[9] http://www.mapsofworld.com/russia/russian-federation-location-map.html

[10] http://www.kembangpete.com/2014/08/25/profil-lengkap-negara-rusia/

[11]http://staff.uny.ac.id/sites/default/files/penelitian/Dr.%20Sunarso,%20M.Si./Buku%20PSP.pdf

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