President Jokowi: Indonesia’s Economy Holding Up Better Compared to Previous Years

President Jokowi at the Indonesia’s Economic Outlook 2023 at the Ritz Carlton Hotel in Jakarta, Wednesday (12/21) (Photo by: PR of Cabinet Secretariat/Oji)

President Joko “Jokowi” Widodo Wednesday (12/21) said that Indonesia’s macro economy recorded better growth compared to previous years.

“We remembered that there was taper tantrum. If we take a detailed look in [the period of] 2014-2015, our current account deficit was at USD27.5 billion in 2014. While in 2015, the deficit was at USD17.5 billion,” President Jokowi stated at the Indonesia’s Economic Outlook 2023 at the Ritz Carlton in Jakarta.

To that end, the President ordered his related administration to carry out structural reforms in order to maintain Indonesia’s macro economy. Previously, he continued, 38.5 percent of the Government securities (SBN) were owned by foreign investors. Currently, the foreign ownership is only at 14.8 percent.

“If [the SBN] is still dominated by foreign investors and our macro economy falters, the foreign investors will cash out. Our exchange rate will also crash. Thus, those are the efforts we make,” President Jokowi added.

On that occasion, the President revealed the concrete results of the improvement the Government has done. In Q3 of 2022, the current account recorded a surplus amounting to USD8.9 billion or 0.9 percent of Indonesia’s gross domestic product (GDP).

“It means that the improvement can be proved and seen in number. I always ask for the number. ‘Sir, it [the number] is better’, “What is the number?’ I replied. Indeed, I always ask for the number considering that it is vital,” President Jokowi said.

Moreover, the President pushed for the improvement of domestic capabilities by utilizing the state assets in a productive manner.

“I have ordered the Minister of Investment, the Minister of Energy and Mineral Resources to revoke the concession. Offer it to those who have the ability so that the land becomes productive. The asset will become productive. Previously, 2,078 concessions were revoked including forest and mining concessions. Revoke it and offer it to those who have good financial ability, the ability of human resources to work on these assets so that the they will become productive assets that greatly affect our economy,” President Jokowi said.

In addition to the state assets, the President also highlighted the abandoned assets including buildings and operational stuffs.

“You can check in government agencies, in State-Owned Enterprises. There are a lot of [abandoned assets]. Do you think I do not know about it? Of course, I know it. These are the things that lead us to be unproductive. It starts from this. Spending on unnecessary stuffs. It is spending on unproductive things. Once again, our domestic capabilities must be boosted,” he remarked.

Furthermore, Coordinating Minister for Economic Affairs Airlangga Hartarto said that Indonesia’s capability in facing challenges caused by COVID-19 pandemic and global uncertainties will serve as a basis for dealing with various challenges in the future.

“With adaptability and resilience, Indonesia is able to face [the challenges] so that it can coordinate the fiscal, monetary, and real sectors. Certainly, this will become a valuable lesson for handling the uncertainty of various risks in the future,” Airlangga said.

For the record, the Indonesia’s Economic Outlook 2023 was held under the theme “Economic Resilience through Structural Transformation”. (FID/UN) (AP/HD/MUR)