President Jokowi: Industrialization Key to Reduce Current Account Deficit
Indonesia has run current account deficit for decades despite its abundant natural resources, according to President Joko Jokowi Widodo.
The President said that every year Indonesia exports millions of tons of raw bauxite with price of US$ 35 per ton while every year it imports huge amount of alumina, a downstream product of bauxite.
“In my opinion, the keys are industrialization and downstream industry, “President Jokowi said during the opening ceremony of the 2018 CEO Networking in Jakarta, Monday (3/12). He added that Indonesia can buy technology or find partners to support the industrialization.
The President went on to say that Indonesia exports approximately 480 million tons of raw coal every year, while the low-calorie coal can be used for LPG, jet fuel, or DME (Dimethyl Ether).
Indonesia also exports 42 million tons of CPO every year, President jokowi said, adding that the Government has enforced the use of B20 diesel, the downstream product of palm oil despite some difficulties in the implementation.
“After the B20 program is completed, we move to B50, B80 and B100 in order to reduce the current account deficit by reducing or eliminating import of diesel fuel,” President Jokowi said.
He further said that Indonesia also exports millions of tons of raw nickel at a price of US$ 30 per ton, while ferronickel, the downstream product, 4 times more expansive than the raw material.
The Government has also enforced the use of downstream product of nickel because the industrialization of nickel will increase the contribution to the nations GDP.
On the occasion, President Jokowi invited all CEOs in manufacturing industry to immediately carry out the industrialization. “Stop or reduce the export of our raw materials,” the President concluded.
Also present during the event were Coordinating Minister for the Economy Darmin Nasution, Minister of Finance Sri Mulyani, Minister of Transportation Budi Karya Sumadi, Minister of State Secretary Pratikno, Cabinet Secretary Pramono Anung, Governor of Bank Indonesia Perry Warjiyo, Chairman of the Financial Service Authority (OJK) Wimboh Santoso, and CEO of PT Indonesia Stock Exchange Inarno Djajadi. (DNA/JAY/ES)
Translated by: Ridwan Ibadurrohman
Edited by: Mia Medyana