Remarks of President of the Republic of Indonesia during the Inauguration of the 16th National Working Meeting of the Indonesian Regency Governments Association (APKASI) at the Jakarta Convention Center in Jakarta, July 10, 2024
Bismillahirrahmanirrahim.
Assalamu’alaikum warahmatullah wabarakatuh.
Good morning,
May peace be upon us all,
Shalom,
Om swastiastu,
Namo buddhaya,
Greetings of Virtue.
Distinguished Ministers of the Indonesia Onward Cabinet, joining us today Minister of Home Affairs, Minister for Finance, Cabinet Secretary, Minister for Cooperatives and SMEs;
Distinguished Chairperson of the APKASI and all administrations;
Ladies and Gentlemen;
Esteemed Guests.
I think we all know that the last five years were uneasy and difficult periode with full of challenges. In health sector, we faced COVID-19 pandemic. In geopolitical sector, wars in Ukraine and Palestine led to oil prices and food prices instability. In environmental sector, we faced heatwaves including El Niño and La Niña. It brings about many crises, including health crises, economic crises, food crises, financial crises, and humanitarian crises.
However, we also have to be grateful, considering that our country can build resilience against any challenges. And our economy recorded a 5.11 percent growth in the Q1 of 2024. It is hard for most of countries to maintain the growth above five percent. You should check other countries’ figures. Our inflation rate can be maintained. the inflation rate in June 2024 could be maintained at 2.5 percent thanks to routine meetings among all of you with Minister of Home Affairs every week that result positive impacts. You should check the inflation rate in Argentina, in Türkiye. The rate is horrible.
And amid current uncertainties, our world competitiveness ranking raised to 27th, surpassed other countries. It was the biggest achievement than other countries. I noticed that in the near future, it’s not about a big country that will defeat a small country. Once again, it’s about a country that can adapt quickly that will win. And we want to be country that can provide swift public services, goods and people’s mobility.
In the previous five years, we have learned a lot. We learned how to be more prudent and wiser and how to manage regions, regencies, provinces, and the state better. We also learned how to manage the budget and to make the policies. Our previous five years have really given us hard lessons.
In the future, the challenges will not be getting easier. It will be more difficult and complex. Thus, we have to be more adaptive and innovative, especially in regions. Whenever I visited regions and inspected markets, I always asked the Regents about the inflation rate. There were few of them who couldn’t answer it. Before I asking all of you, please find the information to Bank Indonesia, the Regional Inflation Control Team (TPID). I also like to ask you about prices of food, including rice, shallot, garlic, chili which are food with fluctuating price.
Once again, competition among countries is getting severe. I call on all of you to optimize the potentials of your respective regions. Potentials in the financial sector, food sector, energy sector, industrial sector, and technology sector. For regions with beautiful landscapes, the tourism sector must be optimized. All potentials must be optimized.
Let me give you an example; Bhutan. This country has no oil and gas resources, the environment is natural, the tradition and the culture are well maintained. But the country is not open for massive tourism. They have their own volume and quota for tourism. They targeted high value tourists with low volume.
We can learn from them. We also have more beautiful tourist destinations. There are many regencies that have unique potentials, but the regents do not know how to optimize, promote them. And the tourists must pay retribution. They have spent much money to come here, and they have to pay more to protect the environment. I have noticed that the regency will earn almost a half-trillion rupiah from it to protect the environment.
Another example; Maldives. It’s known for its beautiful beaches. I noticed that after visiting 85 percent of all our cities and regencies, we also have beautiful beaches. Thirty percent of its revenue comes from tourism sector. They create a new segment of tourism. For example, a conference by the beach. We can learn from it. A meeting carried out at the beach. The participants did not wear shoes. They were happy. We need this kind of ideas.
In Africa, wildlife tourism is so popular, many people want to go there. They provide authentic safari experience to see animals in their natural habitat. We have everything. Komodo dragon as well as bulls in Banyuwangi, rhinos, and orangutans. The most important thing is how we can promote this in order to earn revenue for regions. In Africa, they can earn Rp196 trillion per year from tourism sector.
I noticed that we have unique potentials. Another example is Maros, South Sulawesi. There is a place where I’ve not been there. It has a place where a lot of butterflies live. Where is Regent of Maros? This is very unique. Please develop this area properly and wisely. Do not let a beautiful nature be developed using cements. Please do not. What should we do? Trees must be planted so that more butterflies come. If it can be well promoted with great branding, it can be very attractive. It has a specific theme and it is very good.
Ladies and Gentlemen, if you can promote it well, no matter how expensive the entrance ticket is, many tourists will come to see butterflies. Do not let this are be built using a lot of cements and walls. Please find the right architect to make a good landscape. If the regions are not able to develop it, please let the Bappenas know to develop the area, to bring more benefits to us all.
Lastly, related to the inflation rate, as I have said earlier, the rate is well maintained. You have to maintain it by checking all food prices and directly intervening if there’s an increase in prices.
Related to budget realization and the use of local product, I noticed that the number is still at 41 percent. The use of local product is still at 41 percent in regions and cities, 41 percent, it is still low. Meaning that the rest of them are imported products. Please be cautious. It’s not easy to raise our state revenue from tax, non-tax, royalties, dividend. The Finance Minister has struggled to earn all of them. From a state revenue, it was transferred to regions, but how come it is used to buy imported products? Other countries will gain benefits from us. I remind you to buy our local products. I remind you. Once again, it is not that easy to gain state revenue. So, spend 100 percent of our budget for buying local products.
That concludes my speech on this auspicious occasion. By saying bismillahirrahmanirrahim, I hereby officiate the 16th National Working Meeting of the Indonesian Regency Governments Association, the 2024 Autonomy Expo and the APKASI Procurement Network 2024.
I thank you.
Wassalamu’alaikum warahmatullahi wabarakatuh.
(AP/AW)