Ministry of SOEs and Private Sector should Synergize, President Jokowi Says

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation
Date 15 Januari 2020
Category: News
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President Jokowi poses for a group photo during the inauguration of the central executive board of the Indonesian Young Entrepreneurs Association (Hipmi) for the 2019-2022 period at Kuningan, Jakarta, Wednesday (15/1). PR / Jay)

In a bid to improve national economic development, President Joko “Jokowi” Widodo has instructed Ministry of State-Owned Enterprises (BUMN) to cooperate with privately owned entities, especially the Indonesian Young Entrepreneurs Association (Hipmi).

“I fully trust Minister of SOEs Erick Thohir to create synergies with private sector, considering that there are a number of projects should be completed with a nominal value of Rp2,400 trillion in a year,” the President said during the inauguration of the central executive board of the Indonesian Young Entrepreneurs Association (Hipmi) for the 2019-2022 period in Kuningan, Jakarta, Wednesday (15/1).

“Of the total budget in the SOEs, it is expected that we can level up the country’s young entrepreneurs from small to medium enterprises and medium to large enterprises,” the President said.

On that occasion, President Jokowi also said that the Investment Coordinating Board (BKPM) has recorded Rp800 to Rp900 trillion investment, which shows that the country’s economy is in good and stable condition.

“I have also instructed Head of BKPM Bahlil Lahadalia to pair up the investments with the country’s entrepreneurs. We should not let them walk alone. The implementation can be carried out when investors apply for the investment licenses and they should be served well,” the President added.

President Jokowi went on to say that the investment licensing procedures did not ease the investors to make investment in the country due to services matter.

“A number of investors have actually entered Indonesia to make investment, but we did not serve them well and it made them cancel their intention,” the President said.

President Jokowi also expressed hope that Head of BKPM is able to overcome investment issues, including land acquisition which has been resolved by Head of BKPM in Banten Province.

“This is not right. The investments are already in the country, but we cannot proceed them due to land acquisition and licensing procedures issues in ministerial and regional governments level,” the President added.

According to President Jokowi, there are 42,000 regulations regarding the investment, which overlap one another and the Government plans to complete the issue by this week. “InsyaAllah, we will submit omnibus laws to the House. We have calculated that one regulation may take a long time to be revised so that we propose Omnibus Laws that can complete 74 previous laws,” the President explained.

The President further said that Omnibus Laws will be a leap forward in providing services to the people, the business world, and SMEs so that it is expected to be able to significantly contribute to the country’s economic growth.

In the meantime, President Jokowi said that capital relocation is not only to move ministry buildings or the Palace building, yet it is about changing the mindset, work pattern, and work culture. “The first thing that the Government does is to install the system so that people will follow it,” the President added.

In the new capital city, the President continued, public transportation will be autonomous. “Private cars will be autonomous and electric vehicles. I have a big dream that we will become the first capital city that uses autonomous vehicles for public and private transportation,” the President said.

According to the President, new systems to be established should be efficient and less expensive. At the end of his remarks, the President requested support from all parties regarding the relocation of capital city, considering that there would be an economic transformation in Indonesia towards a better civilization. (FID/EN)

 

 

Translated by: Syarifah Aisyah
Reviewed by: Lulu Wuliarti

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