Press Statement of President of the Republic of Indonesia During Inspection of Light Rail Transit (LRT) at Dukuh Atas LRT Station, South Jakarta, August 10, 2023

Press
How was it after inspecting the LRT, Sir?

President of the Republic of Indonesia (Joko Widodo)
Today, I and a number of public figures: Ari  Lasso, Yuni Shara, Desta, Nirina, Indy, Aurel, Ola, Sari, Widi, Prisia, Lukman, Chelsea.

Press
How about Cak Lontong?

President of the Republic of Indonesia (Joko Widodo)
No need to mention.

So [I] want to re-check the LRT again. Previously there was a need for adjustments in the system. I checked it today at several stations, it is now alright. Later, I will check it once again, if there are no more problems hopefully it will start operating by the end of the month. And most importantly, we prioritize safety and security.

Press
When is the exact date? On what date it will be inaugurated?

President of the Republic of Indonesia (Joko Widodo)
Hopefully on August 26.

Press
How about the certificates and field permits, Sir? Right now the security certificate has not been issued.

President of the Republic of Indonesia (Joko Widodo)
The LRT will take care of it.

Press
The inauguration will be on the same date with the Jakarta-Bandung high speed train?

President of the Republic of Indonesia (Joko Widodo)
No, we’ll try the high-speed train again in September. Once everything is ready, it will operate immediately. The sooner it is operated, the better. Because we know, every day we face traffic jams and pollution. So, we are expecting for a shift of transportation modes, from private cars to mass transportation. Because our annual losses are almost Rp100 trillion due to traffic jams in Greater Jakarta areas and Bandung. Every year, it costs almost Rp100 trillion. And this must be addressed, because from a macro economic perspective it is very detrimental to the country. The Government must provide subsidies, it is our obligation, the state’s obligation, because it is a form of service to the public.

Press
Are you optimistic that the public will be using the LRT?

President of the Republic of Indonesia (Joko Widodo)
Therefore, there is a need for subsidies be it the airport train, TransJakarta, intercity trains, LRT, MRT, high speed train, everything has to have subsidies. Because it can attract people to shift from private cars into mass transportation modes.

Press
Has it been calculated?

President of the Republic of Indonesia (Joko Widodo)
Yes. Ministry of Transportation will do the calculation. It is not my duty.

Press
How about Freeport’s lawsuit against Indonesia that is currently being planned? Do you think there will be further steps from the Government?

President of the Republic of Indonesia (Joko Widodo)
That’s okay. The point is that the downstreaming won’t stop. Downstream after nickel, then followed by copper, bauxite, and so on. Because indeed anyone, any country, any internal organization, can stop our desire for industrialization, for downstreaming exports of raw materials to semi-finished goods, or finished goods. Because we want added value for the country.

Press
Sir, regarding downstreaming that is less effective since it will benefit other countries, any comment?

President of the Republic of Indonesia (Joko Widodo)
How is the calculation? Our calculation is, for example, nickel. When exported in the form of raw materials, one year can only generate around Rp17 trillion. After being downstreamed, it becomes Rp510 trillion.

Just imagine, the state only take taxes. Which one is bigger: taking taxes from Rp17 trillion or from Rp510 trillion? From downstreaming, we can get VAT, corporate income tax, employee income tax, corporate income tax, royalties, export duties, non-tax state revenues. Do count. Rp17 trillion and Rp510 trillion, which one is bigger?

Press
But, the contribution to the GDP keeps decreasing from industrialization, that’s why people call this deindustrialization. What do you think?

President of the Republic of Indonesia (Joko Widodo)
The answer is not like that. I already explained the number. What does it mean? The contribution to economic GDP will definitely be bigger, right?

Press
How about Sambo case?

President of the Republic of Indonesia (Joko Widodo)
We should respect all decisions made.

Press
Sir, based on Ahmad Muzani’s statement, you are considering to revoke the PPDB policy?

President of the Republic of Indonesia (Joko Widodo)
I am considering it. Will review it further. Thank you.

(EST/MMB)