President Jokowi: Infrastructure Development Cannot be Delayed

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 23 Mei 2016
Category: News
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President Jokowi delivers a remarks during the Indonesian Young Entrepreneurs Association (HIPMI) Jamboree, on Monday (23/5) afternoon, in Bandung, West Java

In order to be competitive, Indonesia must move fast, President Joko ‘Jokowi’ Widodo said in his remarks at the opening of Indonesian Young Entrepreneurs Association (HIPMI) Jamboree of the universities in ASEAN on Monday (23/5) afternoon, at the Telkom University Convention Center, Bandung.

Therefore, he said that the Government encourages the de-regulation packages and cutting regulation that bring troubles and hinder the business world.

To realize that, the President added, the Government cannot delay infrastructure projects, most of which are not carried out outside Java.

“Currently, there are many infrastructure projects developed outside Java, including toll roads, seaports, and airports,” President Jokowi said.

The President also believes infrastructure development will improve Indonesia’s competitiveness and reduce logistic and transportation costs.

“The construction in Makassar New Port has begun as well as a major seaport in Kuala Tanjung, minor seaports in Galela and Bau-Bau. I think the infrastructure will definitely improve our competitiveness to compete with our neighboring countries,” the President added.

President Jokowi went on to say that the de-regulation packages launched by the Government aims to open biggest possible opportunities for young people to start a business.

The President quoted the speech of HIPMI Chairman saying that the number of Indonesian young entrepreneurs is 1.6 percent of the total population and still aims for 2 percent.

“We still need 1.7-1.8 million more entrepreneurs to reach 2 percent, while, to reach 4 percent, we need 5.8 million more entrepreneurs,” the President said.

On the occasion, President Jokowi also mentioned that Indonesia’s global competitiveness index ranks fourth of 10 ASEAN countries.

The country with the highest index is Singapore with 5.8 percent, followed by Malaysia with 5.23 percent, and Thailand with 4.64 percent. The next country is Indonesia with 4.52 percent. It means, the President added, there are still many things to be fixed in order to improve our global competitiveness index.

In terms of ease of doing business index, the President admitted that the result is still not satisfactory yet.

Singapore is still ranked first in ease of doing business, while Indonesia’s rank in ease of doing business has improved from the previous 120 to 109. On the other hand, Malaysia ranks 18, Thailand ranks 49, and Vietnam ranks 90.

“We are left behind from Vietnam, Brunei, Thailand, and Malaysia, particularly to Singapore,” the President said.

Indonesia’s rank, the President added, is still at number 109, there is still long way because of the complicated procedures to start a business and the complicated permits that hinder startup entrepreneurs to do business.

Therefore, the President has instructed the ministers to improve Indonesia’s rank to 40 this year, from the previous 109.

“If we cannot accomplish it, it will be hard for us to compete with our neighboring countries,” President Jokowi concluded.

Also attending the event were Chairman of United Malays National Entreprises Association Tan Sri Haji Mohammad Ali bin Mohammad Rustam, HIPMI members around Indonesia, 40 students of University of Technology Malaysia, and several entrepreneurs from Malay World Islamic World.  (DID/AGG/ES)

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