Jokowi to focus on structural reforms in 'second term'

Marchio Irfan Gorbiano

The Jakarta Post / Jakarta

President Joko "Jokowi" Widodo has reaffirmed his commitment to structural reforms during his "second term" to attract more investment to the country and boost exports, saying that Indonesia needed to work hardto realize its immense potential as an economic powerhouse.

The unofficial quick count results point to victory for the incumbent and his running mate Ma'ruf Amin.

The General Elections Commission (KPU) is to announce the official results on May 22, but challenger Prabowo Subianto-Sandiaga Uno has vowed to contest the official results if the KPU did not act upon its alleged findings of foul play at the polls. 

A National Development Planning Agency (Bappenas) study revealed that Indonesia was on course to become the fifth largest economy in the world by 2045-as long as it maintained annual GDP growth rate of 5.7 percent, it executed its structural reform agenda as planned, and that external factors remained conducive in terms of relatively high global GDP growth. 

Jokowi added that he was committed to dissolving state institutions that had proved ineffective, as a learner bureaucracy would allow the government to respond with flexibility to the latest developments.

He affirmed that his administration would not shy away from making bold structural reform policies, as he had been successful in his reelection bid in the Presidential election on April 17. "In the next five years- I apologize- I have no burdens. I will do whatever is best for the country," he stressed.

 Jokowi said structural reforms, which would attract export-ori-ented and import-substitution investments, were necessary to solve Indonesia's persisting current account deficit - an indicator widely cited as a major cause of last year's violity of the rupiah.

Bank Central Asia (BCA) chief economist David Sumual has urged the government would help drive entrepreneurship and improve the country's rangking in the World Bank's Ease of Doing Business (EODB)

Indonesia dropped one rank 73th among 190 countries in the latest EODB report released last year, and ranked 134th in the "starting a business" indicator. 

During the musrenbangnas, National Planning Development Minister Bambang Brodjonegoro submitted to Jokowi a technical design of the National medium-Term development Plan (RPJMN) for 2020-2024 and 'Indonesia 2045", a long term vision toward the centenary of Indonesia independence. 

Under the next iteration of the RPJMN, the government aimed to grow the economy at an average rate of 5.4 percent to 6 percent, while reducing poverty, unemployment and inequality, said Bambang

He added that the government would especially focus its efforts on improving Indonesia's current account deficit through the RPJMN 2020-2024 by diversifying its export products to imrpove the trade balance.

"We have to boost tourism and diversify exports so that we do not rely only on natural resources," said Bambang, adding that the manufacturing sector should also be encouraged to boost its export output.

 

Source: The Jakarta Post.