President Jokowi to S&P Delegates: Many Abandoned Projects Have Been Successfully Completed

President Jokowi receives the delegates of Standard & Poor’s (S&P) Rating Services on Tuesday (10/5) morning, at the Merdeka Palace

President Joko ‘Jokowi’ Widodo received 5 (five) delegates of Standard & Poor’s (S&P) Rating Services led by its Managing Director Guy Deslondes at the Merdeka Palace, on Tuesday (10/5) morning.

Minister of Finance Bambang Brodjonegoro said that the visit of five delegates is an annual event for reviewing Indonesia’s rating investment, particularly portfolio investments.

“This year, S&P aims to see and evaluate whether Indonesia has made some improvements on several sectors or not, be it on economy management, state financial management, and relations between the Central Government and regional governments,” Minister Bambang said on Tuesday (10/5).

Bambang added that during the meeting, the President asserted that Indonesia focuses to speed up infrastructure development, be it derived from budget financing, the State-owned Enterprises (BUMN), or private sectors.

The President also mentioned several projects that have been abandoned for quite long period or with no progress have been successfully completed during his administration in a relatively short time. The President took examples of Jati Gede Reservoir and Trans Java Toll Road projects.

“As far as we know, we have not received investment grade from the S&P yet. Last year, we got BB+ with positive outlook,” Bambang told the reporters after accompanying President Jokowi during the meeting.

According to Minister Bambang, the President also explained some measures that the Government has made by directly monitoring the situation on the ground in order to ensure that the projects are developed on time and in accordance with the provisions or specification needed.

“Furthermore, the President also asserted that Indonesia is very encouraging to attract investment, both domestic investments and foreign investments,” Bambang explained.

According to Bambang, the Economic Policy Packages that have been launched since the middle of last year is a way to improve business climate. He added that they also include cutting permits and time limit in the process to get permit as well as providing facilities and incentives for the investment.

“At the end of the meeting, the President asserted that as the President he will emphasize on reforms. Indonesia is one of emerging economies which is committed to reforms. That’s the point,” Bambang said.

Meanwhile, Minister of Trade Thomas Lembong added that the President focuses on the main principles in economic reform programs, namely openness and competition. According to Thomas, Indonesia’s position in trade is relatively stable as compared to neighboring countries or rival countries. Thomas added that the President also understands Indonesia’s economic position remains competitive.

“We will continue to open up our economy, to force ourselves to be able to compete,” Thomas said in a press statement at the Presidential Office on Tuesday (10/5) afternoon.

Thomas also said that Indonesia wants to sharpen its competitiveness in order to improve trading strategic position in export-import by using trade balance because it will affect the foreign exchange reserves in Bank Indonesia.

Thomas also told S&P delegates that investment is improved because of a total change of the philosophy from previously closed and defensive to being opened and internationalist.

“S&P appreciates all our efforts to improve the position of Indonesia’s economy and competitiveness through economic reforms and other efforts to develop and adjust to export trading strategies including by having a trade agreement with economic blocks, for example with the Europe,” Thomas said.

In the meeting, President Jokowi was accompanied by several ministers and officials of the Working Cabinet, among others, Minister of State Secretary Pratikno, Minister of Trade Thomas Lembong, Minister of Finance Bambang Brodjonegoro, Governor of Bank Indonesia Agus Martowardojo, and Head of Investment Coordinating Board (BKPM) Franky Sibarani.

In the meantime, delegates of Standard & Poors Rating Services attending the meeting were Managing Director, Global Head of Sovereigns & International Public Finance Guy Deslondes; Managing Director and Lead Analytical Manager, Sovereign Ratings Anna Hughes; and Director, Sovereigns and International Public Finance Kyran Curry.

Also attending the meeting were Associate Director, Sovereign & International Public Finance Ratings Yeefarn Phua; Director, Public Sector & Development Organizations, Corporate & Institutional Client, ASEAN, Standard Chartered Bank Scott Wong; and Economist, Asia-Pacific, S & P Global Ratings Vincent Conti.

For the record, Standard & Poors, also known as S&P, is one of the subsidiaries of McGraw Hill as a rating company on stocks and bonds. (FID/ES) (RAS/EP/YM/Naster)