Remarks of President of the Republic of Indonesia at the CNBC Indonesia Economic Outlook 2022, from Bogor Presidential Palace, West Java, March 22, 2022

Assalamu’alaikum warahmatullahi wabarakatuh,

Peace be upon us all.
Om Swastiastu,
Namo Buddhaya,
Greetings of Virtue.

Distinguished Ministers of the Indonesia Onward Cabinet;

Honorable Founder and Chairman CT Corp Mr. Chairul Tanjung;

Honorable economists, investors, and market players;

Ladies and Gentlemen.

This year, we will face the rise of global challenges and uncertainties. The COVID-19 pandemic has been going on for two years, even in 2022 it is not over yet. Global economy has yet to recover, energy, food, and container scarcity as well as high inflation has occurred in various countries around the globe.

At the time when the world began to recover the economy, last month, in February, a war broke out. The war that gives all countries a headache. It will deepen the economic crisis and increased world political tensions. It makes the price of oil, gas, raw materials for fertilizers, and wheat rise. Inflation, certainly, also increased.

The problems have become a challenge for many countries, including Indonesia. The challenges and uncertainties must be faced carefully with cooperation and collaboration between the Government and business actors with prompt and appropriate policies, as well as effective implementation in dealing with these issues. What is certain is that the people must not be a victim of the global uncertainty. We must continue to raise investment that creates new employment and we must continue to strive for inclusive and equitable economic growth.

Ladies and Gentlemen,

We are entering 2022 with improved economic foundation. First, we are one of the successful countries in tackling the pandemic. We can handle the transmission of the COVID-19 virus. Our economic progress is constantly moving throughout 2020-2021 and never stops. One of the reasons for the progress is because we never imposed a lockdown, as this eases the economic acceleration in 2022.

Second, we have embarked on the most fundamental and comprehensive structural reforms in the past year. The issuance of Law on Job Creation and simplifying bureaucracy for investment is a big foundation where we are starting to see and enjoy the results in 2022.

Third, we have carried out a large scale of industrial downstreaming in 2021. We will gradually stop the export of mineral raw materials and coal and encourage domestic downstreaming. The downstreaming measures will gradually be higher, increasing, and continue to drive the economy and create employment in the country.

Fourth, we also have a fairly strong digital economy foundation as a new economic base. Last year, decacorn start-ups have been born in the country and the number of unicorn start-ups continues to rise. This is a proof that digital infrastructure is expanding and digital ecosystem is more favorable.

Ladies and Gentlemen,

With those foundations, I am confident that we can accelerate our economic growth much better in 2022. First, we will continue the downstreaming with more varied product derivatives. This will trigger greater investment, provide more job opportunities. In addition, it will also increase our value of exports, thus the country’s balance of payments, fiscal, and monetary will improve.

Second, we will speed up the development of a green economy, which is Indonesia’s strength. Indonesian nature provides us with great capital to develop cheap green electricity: hydro power, wind power, solar power, and geothermal power are very abundant in our country, Indonesia. We must optimize this strength to increase Indonesia’s competitiveness in the future green economy era.

Third, we have also started the construction of the capital of Nusantara. This is a big work that we start in 2022, and the construction will become one of the driving forces of economic growth in the country, especially eastern Indonesia, and will become a motor of innovation to speed up future economic development.

I invite investors to contribute to the process, to be part of the nation’s important historical journey, to contribute to the progress of Indonesia and the glory of Nusantara.

That concludes my remarks on this auspicious occasion. I thank you.

Wassalamu’alaikum warahmatullahi wabarakatuh.

Om santi santi santi om.

(GWH/LW)