Indonesia Headed to Be New Economic Superpower: President Jokowi

President Jokowi Tuesday (10/08) opens the BNI Investor Daily Summit 2024, at the Jakarta Convention Center (JCC) Senayan, Jakarta. (Photo by: PR /Rahmat)

President Joko “Jokowi” Widodo has expressed confidence that Indonesia will become one of the new economic superpowers, along with China and India.

“We’ve entered ‘the Asian century’, a shift from the West to Asia. The economic growth has also shifted to Asia. It is predicted that there will be three new economic powers in Asia, three economic superpowers namely India, China, and Indonesia,” President Jokowi said in the remarks at the Opening of the BNI Investor Daily Summit 2024 at the Jakarta Convention Center (JCC), Senayan, Jakarta, Tuesday (10/08).

However, he also warned that to achieve that goal, Indonesia must meet various requirements and face many challenges.

Therefore, the President added, staying optimistic is crucial in facing various global challenges, including the impacts of climate change, economic slowdown, and increased geopolitical tensions.

All of these affect the global economy, including Indonesia’s economy, he added.

According to him, Indonesia is still showing positive economic performance with an economic growth of above 5 percent, higher than that of global at 2.7-2.8 percent.

President Jokowi also stated that the country has substantial capital to become a developed country, adding that the economic growth remained stable at 5.08 percent in the Q2 of 2024 and inflation is under control at around 2-3 percent.

Meanwhile, the Consumer Confidence Index is at 124.4 and the spending index showed a growing trend from 145.8 in Q3 of 2023 to 234.8 in Q3 of 2024.

“It means that on a YoY basis, it has increased significantly. And currently, our GDP per capita has reached [US$]5,060, and we hope that in the next five years, it can raise above [US$]7,000 and in ten years, above [US$]9,000, and so on. We must maintain this,” he said.

The President also underscored the importance of downstreaming and digitalization in enhancing Indonesia’s competitiveness.

“Downstreaming is crucial. Added value is crucial. But the second aspect, digitalization, is also very important. One is downstreaming and the second one is digitalization,” he said.

According to him, digital infrastructure must be bolstered with a focus on developing data centers, digital payment systems, and digital analytics.

In addition to digitalization, industrial downstreaming is also vital in increasing added value.

The President stated that notable progress has emerged after the application of downstreaming policies for natural resources such as nickel and copper.

Products such as spoons, pans, pipes, stainless steel, nickel ore, precursors, cathodes, and battery cells are now produced domestically, he added, providing greater added value compared to exporting raw materials.

“Our industries, as a result implementing downstreaming policies, have produced these items. The leap is evident from US$1.4-2 billion before the nickel ban to US$34.8 billion, which is a tremendous leap,” the President said.

In addition to mining products, he said, other natural resources such as plantations, fisheries, and agriculture must also be promoted to ensure added value.

The President also invited everyone to commit to building Indonesia in a tactical and well-developed strategy.

“We must be brave to take our own path. Don’t follow global trends that sometimes lead us into competitions that are difficult for us as we have our own core competencies, our own strengths,” he said.

He also reaffirmed that ‘the Asian Century’ and Indonesia as an economic superpower can be achieved by concentrating our efforts on these matters using tactical plans and strategies. (FID/DNS) (FI/EP)