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Your letters: Economic deregulation package
Economic reform: President Joko âJokowiâ Widodo (center), accompanied by economic ministers and heads of state institutions, announces the governmentâs economic policy package at the State Palace on Sept
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Economic reform: President Joko âJokowiâ Widodo (center), accompanied by economic ministers and heads of state institutions, announces the governmentâs economic policy package at the State Palace on Sept. 9. The economic policy package includes the macroeconomic development program, hundreds of deregulation policies to stimulate economic growth and the protection of low-income people.(Antara/Yudhi Mahatma) (center), accompanied by economic ministers and heads of state institutions, announces the governmentâs economic policy package at the State Palace on Sept. 9. The economic policy package includes the macroeconomic development program, hundreds of deregulation policies to stimulate economic growth and the protection of low-income people.(Antara/Yudhi Mahatma)
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span class="inline inline-center">Economic reform: President Joko 'Jokowi' Widodo (center), accompanied by economic ministers and heads of state institutions, announces the government's economic policy package at the State Palace on Sept. 9. The economic policy package includes the macroeconomic development program, hundreds of deregulation policies to stimulate economic growth and the protection of low-income people.(Antara/Yudhi Mahatma)
I doubt the government's economic policy package will improve Indonesia's worsening economic condition. The first indication is the refusal to disclose details of the content of the package. The second reason is that President Joko 'Jokowi' Widodo's decision to issue a large economic policy package to boost domestic economic growth and bring in foreign currency needed to improve the rupiah's exchange rate against the US dollar is not in line with the Bank Indonesia ban on the use of US dollars for domestic transactions. It really doesn't make sense to me as a layman in economics and finance.
The third reason is that our government appears to be using trial and error to find solutions to the economic woes, and I am skeptical about Coordinating Economic Minister Darmin Nasution's claim that the economic package will involve a lot of deregulation to smooth out investment.
BI and the government need to carry out a complete overhaul of their economic policies, or risk bringing about shortages of food, water, rice, transportation, medicine and many other things that damage businesses and investor confidence and the willingness to operate here in Indonesia.
Hotsaut
Jakarta
The government could sell some of the many businesses they own to foreign entities and spend that money on infrastructure projects. That would also help bring in a lot of much-needed foreign currency to help stabilize the rupiah.
If I am not wrong, about 40 percent of the economy is under the control of the government. Many state-owned companies are run inefficiently and need regular injections of funds to stay afloat.
Fadli Zon could use his contacts in New York to help sell some hotels and apartments owned by the government.
There are large palm oil and rubber plantations in Sumatra and Kalimantan that the government could offload to investors from Malaysia or Singapore. There are even government-owned rubber and palm oil factories, construction firms, steel mills and coal mines.
Many of these have the potential to bring in huge amounts of foreign currency, which could be used to stimulate the economy. Virtually all airports in Indonesia are run and operated by a state-owned airport operator. That is another class of assets that could be leased to foreign investors.
And how about selling off Telkomsel? That will stop it from sending out those annoying messages 10 times a day.
When was the last time Garuda made a profit? Has Pertamina ever made a single cent? Pertamina and Garuda are the symbols of Indonesia's ills. They are asset rich but cash poor because of mismanagement and incompetence.
If the government is serious about stimulating the economy, then it should sell some assets and spend that money wisely to stimulate the economy. What has been announced so far is tantamount to recommending horny goat weed for a severe erectile dysfunction when Viagra should have been prescribed instead.
Abu
Jakarta
