Presidential Chief of Staff: Poverty Rate Declined to 9.8 Percent

Presidential Chief of Staff Moeldoko accompanied by a number of ministers during the press conference at the Building III of the Ministry of State Secretariat, Jakarta, Tuesday (23/10). (Photo by: Agung/Public Relations).

Presidential Chief of Staff Moeldoko said that in the past four years of President Joko “Jokowi” Widodo and Vice President Jusuf Kalla Administration, the Government had managed the macro economy well and carefully.

“The economic growth is stable at around 5 percent and continues to rise amid uncertainty in global conditions. In 2014, the economy grew by 5.02 percent and in the first semester of 2018 our economy grew quite well by 5.17 percent,” Moeldoko said in the press conference on the 4-Year Report of the Jokowi-Kalla Administration adopting the theme ‘Building People of Indonesia towards Advanced Country,’ at the Building III of the Ministry of State Secretariat, Jakarta, Tuesday (23/10).

According to Moeldoko, the unemployment rate decreased from 5.94 percent in 2014 to 5.13 percent in February 2018, along with the opening of job opportunities. Moeldoko added, on his five-year administration, President Jokowi promised to provide 10 million job opportunities and currently, 8.7 million job opportunities have been realized. “We hope that by the end of his administration, the target is fulfilled,” Moeldoko optimistically said.

Regarding goods price, Moeldoko ensured everything is under control. The inflation rate declined from 8.3 percent in 2014 to 2.88 percent in September 2018. The price stability, Moeldoko added, safeguarded the purchasing power of the people and provided discretion for the business entities.

As for the poverty rate, according to Moeldoko, compared to 2014 of 10.96 percent declined considerably to 9.82 percent. It is the first time that the poverty rate has a single digit and was accompanied by a decrease in income inequality or Gini Ratio of 0.414 percent in 2014 to 0.389 percent in March 2018.

Meanwhile on the fiscal and monetary sectors, Moeldoko ensures that everything is well managed, so that the state’s financial and monetary conditions are safe. Thus, the State Budget deficit is controlled. “The deficit is maintained below 3 percent of the GDP (Gross Domestic Product). In 2014 the deficit was -2.34 percent, while in August 2018 the deficit was -1.01 percent,” Moeldoko said.

The current account deficit, according to Moeldoko, continues to be kept below 3 percent of the GDP. If the current account deficit in 2014 was recorded at 3.1 percent, in the first semester of 2018 it was recorded at 2.6 percent.

While foreign exchange reserves, according to Moeldoko, are sufficient to finance imports and foreign debt payments for 6.3 months or 2x above international standards.

“The Government’s debt is managed well and is used to increase productive spending,” Moeldoko said, adding that the debt ratio against GDP is kept below 30 percent, lower than the limit stipulated by State Finance Law at the maximum of 60 percent of the GDP.

Also present on the occasion were Coordinating Minister for the Economy Darmin Nasution, Minister of Finance Sri Mulyani Indrawati, Minister of Trade Enggartiasto Lukita, Minister of Industry Airlangga Hartarto, Minister of Public Works and Public Housing Basuki Hadimuljono, Minister of Maritime Affairs and Fisheries Susi Pudjiastuti, Minister of Tourism Arief Yahya, and Head of the Creative Economy Agency (BEKRAF) Triawan Munaf. (UN/FID/DND/AGG/ES) (GWH/YM/Naster)