President Jokowi: Issue of Decline in Purchasing Power is Groundless

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 3 Oktober 2017
Category: News
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President Jokowi attends the closing of the 2017 National Coordination Meeting of KADIN on Tuesday (3/10) (photo: PR/Jay)

President Jokowi attends the closing of the 2017 National Coordination Meeting of KADIN on Tuesday (3/10) (photo: PR/Jay)

President Joko “Jokowi” Widodo considered that issue concerning the decline in purchasing power of the public recently is deliberately conveyed by politicians for the sake of the 2019 political interests, which is a year away. However, as a matter of fact, the issue is groundless. “That is what politicians do, they raise the issues for 2019. Let us just be honest, the 2019 political year is a year away,” President Jokowi said in his speech at the closing of the 2017 National Coordination Meeting (RAKORNAS) of the Indonesian Chamber of Commerce and Industry (KADIN), at the Ritz Carlton Hotel, Jakarta (3/10) evening.

What is actually happening, according to the President, is a shift from offline to online market. Many people do not see it. The President showed the data that courier services rose by 130 percent at the end of this September. “Where does this figure come from? Yes, we conduct a thorough check with DHL, JNE, Post Office. I’m a field person, no need to argue,” the President firmly said.

In addition, the President added, Value Added Tax (VAT) rose by 12.14 percent. It means, there is economic activity. “VAT rose by 12.14 percent. I obtain this figure this morning,” the President asserted.

Next, growth of tax revenue. Industry rose by 16.63 percent compared to last year. Trade rose by 18.7 percent. Mining, exports have started to recover, rose by 30.1 percent. “It’s up to you to believe it or not, but I obtain this figure,” the President said.

The President continued to explain that agriculture sector rose by 23 percent over the past year. Meanwhile, the construction is only 2.4 percent. “Why it fell? That’s because I already lowered the final tax from 5 to 2.5 percent,” the President explained.

Regarding a number of stores closed its operation, the President explained, the stores closed, but the warehouse rental increased. The company’s service in the field of warehouse lease, according to the President, increased by 14.7 percent. “It means there is a shift from offline to online market. Similarly, in China, a number of stores closed more than 30 percent,” the President said.

If counting from big online stores, such as BukaLapak, Blibli, or, the President admitted, it cannot be seen because Instagram is used for sale now in Indonesia.

The President mentioned that individuals are now selling products via Instagram, Facebook by posting pictures. Therefore, according to the President, this figure cannot be traced properly. In order to track, it can be carried out through courier service.

Macro Indicator

At the beginning of his speech, President Jokowi said that actually the figures are clear. Trust is already there. An example of investment grade is clear, such as Moody’s, First rating, Standard and Poor’s.

The rise of investment destination countries from the 8th to 4th, the President continued, is also trust. Ease of doing business increased from 120 to 91. It is also trust. “Well if these figures are in doubt, it is not the business players who are doubtful but rather the politicians are. Or, politicians who are also business players,” the President said.

Accompanying President Jokowi on the occasion were Coordinating Minister for the Economy Darmin Nasution, Minister of State Secretary Pratikno, Minister of Trade Enggartiasto Lukita, Minister of Industry Airlangga Hartarto, Minister of National Development Planning/Head of National Development Planning Board (Bappenas) Bambang Brodjonegoro, Head of Creative Economy Agency (Bekraf) Triawan Munaf, and Head of Indonesia Investment Coordinating Board (BKPM) Thomas Lembong. (FID/JAY/ES) (MUR/YM/Naster).

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