Introductory Remarks of President of the Republic of Indonesia at the Plenary Cabinet Session, 17 November 2021, at the Presidential Office, Special Capital Region of Jakarta

Bismillahirrahmanirrahim,

Assalaamu’alaikum warahmatullaahi wabarakaatuh,

Good afternoon,

May peace be upon us all,

Om Swastiastu,

Namo Buddhaya,

Greetings of virtue.

Distinguished Vice President, Ministers,

On the Plenary Cabinet Session today, let me underscore several matters for us to pay attention to.

First, the health sector. We must be focused on lowering the number of daily and active cases. We are aware that the number of our active cases is below 9,000 and there is an addition of 300-400 daily cases. And we must pay more attention to provinces, regencies, and cities that have seen even a slight increase as we are aware that in the United States, the number of daily cases has gone back up to 70,000. In the United Kingdom, it is 39,000. In Russia, it is 38,000. In Germany, it is 30,000. We must be vigilant to avoid this occurrence in our country.

Once again, provinces with increasing number of cases, albeit only a slight increase, must be warned and assisted and backed up so that the number of cases can drop again. The same goes with regencies and cities. We must look thoroughly because all of our data is complete. Help them to suppress the number of cases so that the number can decline.

Second, the economic sector. First, it is November already. It is almost December, so do speed up State Budget and Regional Budget realization. Every ministry and agency must concentrate on the realization of the State Budget. Minister of Home Affairs should also pay attention to those whose realization of the Regional Budget is still low. Remind them that matters regarding this Regional Budget is vital for our economic growth.

For example, the realization of Social Protection Program only reached 77 percent of the Budget Execution List (DIPA). The Labor Intensive Program only reached 67 percent. Support Program for MSMEs and Corporations only reached 60 percent.

Second, it is still about the economic sector, be vigilant of all matters related to global risks. For example, economic slowdown in China. We should really monitor it since we have large exports to the country. Then, the risk of the US’s tapering off policy, we should closely monitor the impacts and what we must prepare, what we must do. Finally, matters related to global inflation, what the impacts would be like, calculate everything. We must calculate everything, which ones we should anticipate.

Also, be aware of the commodity super cycle. We are aware that currently Indonesia’s leading export commodities are soaring. This generally only lasts for 18 months. Therefore, we must take steps to anticipate that by strengthening export-oriented management industries.

Third, be vigilant of our challenges in 2022, which is the potential of pandemic continuation and global economic slowdown due to the global pandemic that still has not ended. Therefore, the State Budget in 2022 must be the primary instrument to move economic growth, strengthen economic resilience, accelerate our competitiveness, especially competitiveness in export and competitiveness in investment. Spending must be sharp and efficient. Routine spending, unnecessary spending must be eliminated and shifted to productive spending.

And we have to make sure of it. It is important for 2022, early 2022, January 2022. We must be able to execute the budget. It means that in these months, we will prepare the administrative work so that at the beginning of the year, in January, it can be executed. And we have to prepare, once again, the basis for that implementation.

Fourth, do immediately push for investment realization. There are many investment commitments, but sometimes if they are not monitored, the realization of these commitments is slow. We must remember and be aware that the State Budget only contributes approximately 15 percent to our GDP. It means that private sectors, investment, SOEs have bigger contribution.

And my meeting with Sheikh Mohamed bin Zayed and Ruler of Dubai Sheikh Mohammed bin Rashid Al Maktoum, as we are aware resulted in an investment commitment of US$44.6 billion. We must truly monitor it, follow up so that it can translate into US$44.6 billion investment commitment.

An investment commitment worth US$9.29 billion in energy transition and green economy that was made during our meeting with British Prime Minister Boris Johnson and British CEOs must also be monitored and followed up. This is not a small figure. Forty-four [billion] is huge, 9 [billion] is also huge. Everything must be monitored and followed up immediately. We all have the ball. Coordinating Minister for [Maritime and] Investment Affairs, Minister of Investment, Minister of State-Owned Enterprises, everyone related to this must concentrate so that Coordinating Minister for Economic Affairs—so that everything that has become a commitment can be realized and manifested.

Finally, regarding development of green economy and energy transition to renewable energy, it really must be our joint commitment. And we must ensure that the investment progresses to replace coal power plants with renewable energy, including by developing electric vehicles and batteries, as well as developing Green Industrial Park in North Kalimantan province that uses energy from hydropower. It should be immediately realized and started.

That concludes my speech on this auspicious occasion.

I thank you. (DH/EP)