President Jokowi Highlights Seven Directives to Respond Global Economic Turmoil

President Jokowi in his remarks on the 2022 National Development Planning Conference (Musrenbangnas) at the State Palace in Jakarta, Thursday (04/28), (Image source: a screenshot)

In a bid to respond to the global economic turmoil, President Joko “Jokowi” Widodo Thursday (04/28) has underscored seven directives to be used as a common reference.

First, President Jokowi urged the Cabinet to focus on increasing the domestic component value (TKDN) by using the potential for goods and capital expenditures to buy domestic products.

“The potential spending on goods and capital and services value at the Central Government is Rp526 trillion, (while) in the regions is Rp535 trillion. Means, the total has reached Rp1,062 trillion plus SOEs of Rp420 trillion. This is a huge number,” the President said in his remarks at the opening of the 2022 National Development Planning Conference (Musrenbangnas) at the State Palace in Jakarta.

Furthermore, President Jokowi ordered the said budget not spent on imported goods since it will cause domestic production stagnant. He also urged the Cabinet to arrange national production capacity and encourage policy-making in favor of the import substitution industry as well as provide assistance for MSMEs to scale-up.

Second, the President urged for the acceleration of downstreaming the industries to be carried out domestically. For example, encourage the mining-rich regions to build smelters immediately to create added value and provide job opportunities. “We should not be a mere raw material exporting country. It must be stopped,” he added.

Third, to increase productivity and self-reliance in the food and energy sectors for they are very crucial in the future and Indonesia has potential in both, President Jokowi said.

Fourth, the President continued, the investment must be increased so it would create as many jobs as possible. Therefore, he ordered the Cabinet to simplify and speed up business licensing process so that it will attract investment.

“We can no longer depend on the State and Regional Budgets. We have to be careful about this. Therefore, we must be creative in finding new innovative sources of financing by continuously improving the ease of doing business and attractiveness of investment,” President Jokowi added.

Fifth, the Government will start a deficit below three percent of GDP next year in accordance with the provisions so the President ordered the Cabinet to plan the budget in detail and precise manner.

Sixth, the Government must continue its strategic agendas to improve human capital’s quality and reduce extreme poverty and stunting. “Improving the quality of human capital through transformation in the health sector, increasing access and quality of education, as well as up-skilling and re-skilling the workforce so they can be more productive and competitive,” the President stated.

Seventh, President Jokowi ordered all ministries/agencies and local governments to support the General Elections Commission (KPU) and the General Elections Supervisory Body (Bawaslu) in preparing the upcoming elections, which began in June 2022.

“This includes, of course, budget support from the State and Regional Budget so that the elections can be held in proper and smooth manner,” the President remarked. (MAY/UN) (GWH/LW)