Introduction of the President of the Republic of Indonesia on Plenary Cabinet Meeting at Presidential Office, 2 September 2015
Unofficial English Translation
Assalamualaikum warahmatullahi wabarakatuh,
Vice President,
All Ministers,
Heads of institutions,
Our current economic condition, compared with the condition in 1998 or 2008, from the numbers I get, is much better. However, I need to explain that we must be careful and cautious. As I have said before at the previous cabinet meeting, we need major deregulation and we need to make new regulation that really gives good climate to our economy as soon as possible.
We almost run out of time; although based on the data, such as capital equity ratio, banking ratio of Indonesia at the moment is still above 20%. It is very good. If we compare to other countries, it is among the best in Asia. In terms of foreign exchange, our foreign exchange reserve until today is US$ 107 billion USD, it is enough for 7.5 months.
Indonesias foreign debt ratio is 34% which is far from the ratio in 1998 that is above 120%. These condition should make us careful. We must be careful, cautious, stay alert, and do anything we can.
Therefore, I ask to organize a meeting with Indonesia Chamber of Commerce and Industry as well as other business associations within this week. I have heard that yesterday almost more than 100-110 regulations that did not create good business climate were collected.
Hopefully, this week, we can have a one day or two-day meeting in Bogor to solve this problem so that we can decide which aspect that needs to be cut, needs to be processed and needs futher review. The solution should be found as soon as possible.
If not, business world will be difficult to use their capital to invest and to maintain their capital flow because the flow of money from outside will be hampered. I also want the revision of Law that hampers goods/services procurement or business climate to be carried out soon. I hope we can prioritize the revisions.
These reviews need to be carried out soon and I hope this month we can figure out which Law that would be proposed to the House to be revised and which one to be hasten like the Financial System Security Net Law that is really needed as a foundation.