In implementing national development always refers to the national identity and noble universal values to embody the life of a sovereign nation, independent, fair, prosperous, developed, and solid, both moral and ethical strength of the Indonesian nation. This is consistent with national objectives, as embodied in the Preamble to the Constitution of 1945, namely:
To protect the people and the country of Indonesia, promote the general welfare, the intellectual life of the nation, as well as participate in the establishment of world order based on freedom, lasting peace and social justice.
The above statement is a reflection that essentially national development goals is to create a prosperous Indonesia community life, physically and mentally. To achieve this, the construction of which is carried out by the Indonesian nation is sustainable development, which covers all aspects of society, nation and state.
So that the construction carried out more focused and results and efficiency that is effective for the life of the entire nation of Indonesia, the construction of which is carried out referring to the programmed plan gradually by observing the changes and developments taking place in public life. Therefore, the government devised a development plan that is arranged in a Repelita (Five Year Development Plan), and began Repelita VII described in a REPETA (Annual Development Plan), which contains the description of the policy in detail and measured about some Propenas (National Development Programme) , Draft State Budget 2001 is the first of implementation Propenas REPETA as an elaboration of the Guidelines 1999-2004, in addition to the first year of implementation of regional autonomy and fiscal decentralization.
Definition of National Development
Since the first Five-Year Plan (1969) to present five year plan (1999.) has realized some development programs whose results have touched all aspects of society, both aspects of the political, economic, social and cultural. Although the realization of the construction has been touched and enjoyed by almost all people, but it does not happen in a democratic means. In other words, the results of such development has not been able to reach even distribution throughout the life of the community. Still a lot of inequality or the development gap and outcomes, both between the central and regional or broad in scope is the gap between Eastern Indonesia (KTI) and the Western Region of Indonesia (KBI), especially in the economic sector. One gap in the economic sectors which are unequal economic power in each region, such as the unequal distribution of income levels (per capita) population, poverty and prosperity, market mechanisms and others.
The impact of this gap has caused some turmoil in the form of demands for equitable development and results, from and to every region in Indonesia. To reduce or even eliminate the gap, the government has taken several policy development including by enacting Law No. 22 of 1999 on Regional Autonomy that in principle the devolution of central authority to the regions to manage their own household in accordance with the potential of each region.