Introductory Remarks of President of the Republic of Indonesia at Plenary Cabinet Meeting on 2023 Economic Projection, Evaluation of COVID-19 Handling, and Anticipation of Food and Energy Crises, at the State Palace, DKI Jakarta, December 6, 2022

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 6 Desember 2022
Category: Introductory Remarks
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Assalamu’alaikum warahmatullahi wabarakatuh,
Good afternoon,
May prosperity be upon us all,
Om swastiastu,
Namo buddhaya,
Greetings of virtue.

Distinguished Vice President, Coordinating Ministers, Ministers, and Heads of Government Institutions.

As 2022 comes to an end, I have a few things to say in welcoming 2023. First, the anticipation of disasters, extreme weather, and things related to traffic safety. We all also need to pay attention to weather information from the Meteorology, Climatology and Geophysics Agency (BMKG) as early warning and disaster mitigation in all disaster-prone areas, as well as ensure that the Government is present in expediting humanitarian assistance and hastening the reconstruction of buildings affected by the quake or other disasters once the condition has been conducive.

Second, regarding economic situation next year. Once again, we must remain careful and stay alert over financial crises and a probable decline in exports. We also need to stay alert to a food crisis because it can trigger social and political issues. Do the calculation  accurately for rice assistance. Do not miscalculate; otherwise, we could end up having no rice reserve stock. Or at some point, if the traders notice that we run out of rice stock, rice prices will surely rise. This is the law of supply and demand.

We know that global situation is still not in a good state. Therefore, any policies related to the lives of many people must be well calculated. The key, once again, lies in the collaboration among ministries and agencies. We must break down silos. Do consolidate the data, policies, and also implementation.

Third, grand strategy-related matters in the midst of global economic turbulence. I’d like to remind all of you to improve consumption arrangement. Monitor and control the government spending in the State Budget, the Regional Budget, and the State-Owned Enterprises (BUMN) Budget to increase public consumption. Therefore, so-called the purchase of domestic products is non-negotiable.

At the beginning of the year, Ministry of Public Works and Public Housing (PUPR) usually starts its spending. I urge other ministries to follow suit. Do accelerate the realization of capital spending and social spending at the beginning of the year, and then monitor spending in detailed manner. Do not get stuck in a routine.

Fourth, regarding inflation. I order Minister of Home Affairs to continue conveying inflation control in the regions to regional leaders. There are several regions that have not carried out inflation control completely. Please, warn them. And, we can clearly see that inflation in the last three months which stood at 5.9 has decreased to 5.7 and run down to 5.4. The regions have already controlled it, but another warning may work so that every region does it. That way, I will see the figure going down again and again.

Fifth, regarding increased investment. In addition to consumption expenditure and inflation control, an increase in investment is also key to economic growth in 2023. It cannot be negotiated anymore since it will greatly affect economic growth. We will continue industry downstreaming consistently. This morning, we talked about bauxite. We will immediately decide when we will ban the export of bauxite raw materials. We should announce it soon since investment is also related to job creation which is much needed nowadays.

Sixth, regarding the increase in exports. If the demand of our largest export markets drops, both from China and the US, Ministry of Trade should be able to change the market to other countries that have roughly the same demand. I see that our products have great potential in India but no approach has been made yet.

In addition, regarding foreign tourists. Any matters related to the visit from foreign tourists are crucial, especially priority destinations in Labuan Bajo, Mandalika, and Borobudur.

Seventh, regarding COVID-19 handling. Mitigation measures must still be taken despite a decrease in daily cases. As of December 5, positive cases have risen to 6,000 or 7,000. Yesterday, I saw daily cases already stood at 2,234. Then, booster vaccination must still be accelerated to improve our community’s immunity even better.

That concludes my remarks.
I thank you.


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