President Jokowi Urges Regional Heads to Encourage People Spending
Following the revocation of public activity restrictions (PPKM) policy, President Joko “Jokowi” Widodo expressed hope that public consumption will increase so that it can boost Indonesia’s economic growth.
The President revealed that last year the public funds that were not spent and kept in banks reached Rp690 trillion.
“The responsibility of the governors is how to keep household consumption maintained and increasing. We know that in 2022, public and household consumption were at 4.93 [percent]. We hope that in 2024 the figure will increase to 5.4 percent. If this happens, economic growth will increase as well,” said the President when opening the 2023 National Working Meeting (Rakernas) of the Association of Indonesian Provincial Governments (APPSI), Thursday (02/23), at the Ballroom of Novotel Hotel, Balikpapan city, East Kalimantan province.
In particular, the President highlighted the arrangement of arts and sports activities that can encourage public spending. He urged related officials not to hinder permits for arts and sports activities since those activities can boost economic growth.
“That is good for our economy. I have talked to the National Police Chief (about this issue). Now at this occasion, I order governors, deputy governors, and regional secretaries, to ease the permitting process. Don’t hinder anyone because it affects public spending. Let the Rp690 trillion in the bank be spent,” he said.
The President estimated that in 2023 there will be approximately 3,000 sports and art events. He asked related staff to be able to issue permits within 1-2 months before the events so that organizers can promote these events to the public earlier.
In addition, the President also encouraged regional governments to intensively promote tourist villages which could not only trigger consumption but also stimulate micro, small and medium enterprises (MSMEs).
“Revamp (the village) and promote it. It doesn’t matter if the location is in the rural area. The point is we have to promote it so that people come to those places to spend their money and also encourage MSMEs to sell their products there. Make the people spend their money as much as possible,” he said.
On that occasion, President Jokowi also reminded regional heads to increase spending on domestic products while at the same time encouraging MSMEs to upgrade. He revealed that of Rp1,100 trillion, the potential spending on domestic products in 2022 has only realized around Rp762 trillion.
“There are still opportunities to improve so that we can help our MSMEs to upgrade. Do continue to encourage this so that the regencies/cities are willing to spend their regional budget to buy domestic products,” said the President. (GUN/UN) (EST/MMB)