President Jokowi: Do Not Fear Competing in the Era of MEA
Date 27 November 2015
President Joko Widodo (Jokowi) ask the leaders of business world, and the community should not be afraid to enter the era of the ASEAN Economic Community (AEC) in early 2016. President invites all parties to identify in detail the weaknesses first to determine the ammunition needs to be prepared in the face of that era.
“The competition is like a war, for winning we should be prepared the ammunition first. For example, how to measure the strengths and weaknesses of the economic indicators. I think the figure is still better than other countries. If we see inflation of 8.2 percent last year, this year we estimate is between 3.5-3.8 percent,” said President Jokowi when give a speech at COMPASS 100 CEO
Infrastructure Development Depress Logistics Costs
Further President Jokowi said that the Government also continues to build infrastructure, such as toll roads, rail, sea and tolls. Another effort that needs to be realized is connectivity across the island and Intra Island, although the results cannot be perceived in one or two months.
“These efforts are done in order to reduce the cost of logistics to be cheap which would depress the price of goods is lower. If not, the applicable costs will be like now,” President said.
The President comparing the cost of transport of cattle by ship that can carry 500 cows and by truck. “Previous cow freight costs Rp. 2 million/cow, having provided the ship the cost becomes Rp. 300,000,” the President said, adding that, of course, with a decrease in cattle transport costs, the price of beef will decline.
On that occasion President Jokowi also reminded, that we should start exporting finished goods, no longer just exporting raw materials. We, the President said, can no longer export raw cocoa, palm oil, aluminum, bauxite, so we have to start downstream and industrialization. “There must be value added in the country and will have a value many times over,” he said.
Related to the Economic Policy Package, President Jokowi said that the rules should encourage and accelerate our move, not inhibiting ourselves.
Through deregulation package, the licensing process is cut into 22 permits, but a handling still as long as 260 days. President always emphasizes this in the ministers. “Do not report to me if the time is still a matter of days. Report to me if the permits already count hours,” President said.
The result is there have been changes made to a matter of hours by BKPM, which is only a 3 hour have obtained an investment permit, notary and NPWP.
The president said we must be confident and optimistic. “Once again, do not be afraid to compete. Other heads of state whispers, they are afraid of us. They are afraid of Indonesian products entering their countries,” President said. (TKP/ES)/Sy.