President Jokowi Hopes Economic Growth At Least 5.3% to Solve Inequality, Coordinating Economic Minister Says

Coordinating Minister for the Economy Darmin Nasution accompanied by Cabinet Secretary Pramono Anung delivers a press statement after a Plenary Cabinet Meeting on Wednesday (4/1), at the Bogor Presidential Palace, West Java

Considering that investment is a motor for economic growth, President Joko “Jokowi” Widodo gave instruction to all Government apparatus to improve themselves  and seeking for more foreign investments so that Indonesia’s investment growth will rise by 6 to 6.2 percent than previous year.

“Economic growth can be stimulated if household consumption and other variables remain as the previous year, while the investment is increasing. Hopefully, our economic growth will be beyond the baseline mentioned in the State Budget, which is 5.1 percent,”  Coordinating Minister for the Economy Darmin Nasution told the reporters after a Plenary Cabinet Meeting on Wednesday (4/1), at the Bogor Presidential Palace, West Java.

If we can achieve that state, Darmin added, President Jokowi hopes economic growth will reach 5.2 percent, 5.3 percent or even higher. The President also asserted that Indonesia’s economic machine could be more balance as long as the export is on normal condition. It should not drop like the previous year even though world economy and trade are slowing down.

How do we do that? According to Darmin, President Jokowi suggested to look non-conventional and traditional markets. “Do not only focus on USA’s, as well as Chinese’s markets, because there are India, Pakistan, Algeria, Nigeria, and others which are also considered as big markets,” Darmin said.

Therefore, if investment growth improved, non-traditional market will be developed, and inflation rate will stay below 4 percent, Indonesia’s economic growth will increase better than the previous year. Accordingly, poverty will be reduced, and economic gap will be shorthened, Darmin explained.

Previously, at the beginning of the press conference, Darmin said that President Jokowi asked more attention to be drawn and followed up the link between economic growth and unemployment rate, poverty rate, as well as income inequality.

Also on that occasion, Darmin revealed Government’s plan to announce the 15^th Economic Policy Package on logistics as well as Indonesia National Single Window, which is part of logistics matters and related with dwelling time at seaports. “Administrative procedure of dwelling time is under the coordination of Coordinating Ministry for the Economy, while the infrastructure procedure is under Coordinating Ministry for Maritime Affairs’. Well, we will cooperate to cut the dwelling time from 2.9 days to certain time as intended by the President,” Darmin concluded. (EN/JAY/SM/OJI/FID/ES) (RAS/MMB/YM/Naster)