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Industry groups have high hopes for Jokowi
The inauguration of President Joko âJokowiâ Widodo has sparked new hopes among local business groups aspiring for a wide array of reforms to boost business in the country
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he inauguration of President Joko 'Jokowi' Widodo has sparked new hopes among local business groups aspiring for a wide array of reforms to boost business in the country.
Several leaders from local business groups working in both the upstream and downstream industries expressed high optimism on Monday that the incoming administration could introduce a series of reforms to improve the business climate in their specific sectors.
Indonesian Chamber of Commerce and Industry (Kadin) agriculture market development committee head Karen Tambayong expected the new President would address key issues hampering horticulture production, primarily farm land, the sizeable amount of quality seeds and infrastructure to handle perishable output.
'I have big expectations for a massive change in mind-set and actions. Horticulture is a source of nutrition and agricultural produce with high added-value, so we must start designing it as a major contributor to push up gross domestic product [GDP],' Karen said.
Indonesia, the world's fourth most-populous nation, has struggled to meet bigger demand for food to feed its 250 million population, half of which belong to a growing middle class with bigger purchasing power.
Within this decade, notably in recent years, the country has seen imports of fruits and vegetables rise as the domestic harvest cannot cope with the jump in demand.
Jokowi has stated his intention for the country to be self-sufficient in the food staples of sugar, rice and corn within four years.
Indonesian Iron and Steel Industry Association (IISIA) executive director Hidayat Triseputro voiced optimism that the government would introduce a set of policies to revive the domestic steel market, which had shrunk lately.
- Real sector businesses optimistic new govt can improve business climate
- Horticulture must be designed to contribute more to GDP: Kadin
- Iron, steel group expects boost from Jokowi's infrastructure plans
'We hope that programs under the Jokowi administration, especially those on infrastructure development, can push up demand for steel and our national steel producers can take advantage of such growth,' he said. Jokowi has promised that his economic vision for Indonesia will rely on maritime development, such as the improvement of infrastructure for sea-based transportation.
Among the policies necessary to enhance growth in the steel industry would be curbing unfair imports to enforce the law against violations of National Indonesian Standards (SNI) and prioritizing the use of domestic steel in state budget-funded projects, Hidayat further explained.
The steel industry is considered central to the upstream industry as the wide range of products it produces can fuel growth in related industries, such as automotives.
The automotive sector, which has experienced a boom in recent years as Indonesia is deemed to have overtaken Thailand as the world's automotive manufacturing hub, only expects consistency in policies.
'[I hope] that government policy will be consistent [...] so that investors with a stake in the country can conduct business in peace,' Association of Indonesian Automotive Manufacturers (Gaikindo) secretary general Noegardjito said.
Fajar AM Budiyono, the secretary general of the Indonesian Olefin, Aromatic and Plastic Industry Association (INAplas), hoped the government would make good on plans that state-owned oil and gas firm PT Pertamina would look to revitalize several oil and gas refineries in the country that have petrochemical production capabilities.
