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Jokowi criticizes 'import mafias'
Presidential candidate Joko âJokowiâ Widodo has aired suspicions that an âimport mafiaâ, or group of cartels, was responsible for making Indonesiaâs economy dependent on imported goods and commodities, even though the country is capable of producing them independently
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residential candidate Joko 'Jokowi' Widodo has aired suspicions that an 'import mafia', or group of cartels, was responsible for making Indonesia's economy dependent on imported goods and commodities, even though the country is capable of producing them independently.
'They are gaining a lot of benefits in a system of rent-seeking that tolerates imports. We know that importing many kinds of things is not efficient for the state budget, but we are unable to stop it,' he said on Monday, as quoted by Antara news agency.
Many experts observe that the Indonesian economy has been trapped in a rent-seeking system, which is when a company, organization or individual uses their resources to obtain an economic benefit from others without reciprocating any benefits back to society through wealth creation.
According to Jokowi, government officials should possess the political will to cut imports, which he promised to reduce by conducting a transition period in one or two years.
'We will not have added-value imports when goods can be sold cheaper if we produce them domestically,' he said.
Jokowi also said that domestic production should be supported by enhancing infrastructure through new projects, which he claimed could be financed by funds worth Rp 67 trillion (US$5.64 million) created through savings generated by substituting fuel for coal.
According to the Jokowi-Jusuf Kalla's programs declined in a 41-page document to the General Elections Commission (KPU), the pair have an aggressive approach to reforming the economy and promoteing economic independence by developing domestic strategic sectors, such as cutting energy imports by promoting exploration at home.
The Jokowi-Kalla ticket, designated as the official number-two candidates, are supported by a coalition led by the Indonesian Democratic Party of Struggle (PDI-P) that includes the National Awakening Party (PKB), the Hanura Party and the NasDem Party. The coalition secured 207, or 39.97 percent of the 560 seats at the House of Representatives. (gda)
