Gov’t to Recalculate Global Economic Slowdown Risks

President Jokowi enters the Presidential Office, Jakarta, Monday (9/3). (Photo by: PR/Jay).

Amidst the outbreak of the coronavirus that leads to the global economic slowdown and the likely impacts until next year, President Joko “Jokowi” Widodo has ordered his Cabinet to recalculate the risks in detail.

“We have to strengthen the implementation of mitigation measures this year for next year,” President Jokowi said in his introductory remarks at the Limited Cabinet Meeting on Macroeconomic Framework and Fiscal Policy Highlights in 2020 at the Presidential Office, Jakarta, Monday (9/3).

The President also expressed hopes that the 2021 Fiscal Policy Draft will strengthen the resilience of the national economy, overcome various economic risks that may arise, and be able to protect the country’s economy from global economic uncertainties.

“We must remain optimistic despite global economic pressures. Last year, we recorded 5.02 percent of economic growth,” President Jokowi said, adding that the growth was quite positive amidst the global economic disturbances and the possibility of recession that has been reported in several countries.

The President went on to say that the structural reforms which has been carried out consistently, especially following the Omnibus Law on Job Creation and Taxation, would create new momentum for Indonesia’s economic growth.

“The economy must grow so that fiscal policy in 2021 can provide stimulus to improve national economic competitiveness, create added value, and encourage equitable development,” he said.

President Jokowi also ordered his Cabinet to provide incentives for manufacturing industries and increase investment attractiveness to create more jobs.

“We need to boost the development of downstream industries, especially in the eastern part of Indonesia, as well as strengthen micro, small, and medium enterprises so that they can scale up and enter the national supply chain and global supply chain,” the President added.

The Head of State also urged the Cabinet to give special attention to the recipient of People’s Business Credit (KUR), Mekaar (Fostering the Economy of the Prosperous Family), Ultra-Micro Financing (UMi), and the Micro Waqf Bank programs.

President Jokowi further said that in 2021 the trade balance and current account deficit must be narrowed down so that the Government can turn its priorities to develop import substitution industries, continue the bioenergy policy to B50, and formulate breakthrough steps to increase oil lifting. (TGH/EN)

Translated by: Galuh Wicaksono
Reviewed by: Muhammad Ersan Pamungkas