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Jakarta Post

Jokowi tells CEOs to stay optimistic

Prima Wirayani and Grace D. Amianti (The Jakarta Post)
Jakarta
Fri, November 25, 2016

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Jokowi tells CEOs to stay optimistic Stay optimistic: President Joko “Jokowi” Widodo, accompanied by Kompas chief editor Budiman Tanuredjo, attends the Kompas100 CEO Forum 2016 at the Jakarta Convention Center on Thursday. Jokowi called on business players and the public to remain optimistic amid global competition. (Antara/Yudhi Mahatma)

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n President Joko “Jokowi” Widodo’s tour to cool down recent political tensions, the destinations vary, as do the people he meets with, from political, security and religious leaders to bankers and businesspeople.

On Thursday, the President and top Cabinet members spoke of one message in front of the CEOs of 100 top publicly listed firms: Optimism.

“I just want to convey one word, which is optimism. Let us not forget the word, although external factors are not supportive and the political situation has been getting a little bit warmer recently,” he said in his remarks at the Kompas 100 CEO Forum, organized by daily newspaper Kompas.

The “warm” political conditions stemmed from a large-scale rally earlier this month carried out by conservative Muslim groups demanding the prosecution of Jakarta Governor Basuki “Ahok” Tjahaja Purnama over alleged blasphemy. Jokowi suspected there were political actors behind the rally, with some observers believing the protests were also aimed at undermining his administration.

To cool things down, Jokowi has gone on tour to meet with some of the nation’s most influential figures, including those from the headquarters of the armed forces, Islamic organizations and political parties. He has also spoken to hundreds of bankers who attended the central bank’s annual meeting on Tuesday.

In instilling optimism in the business community on Thursday, Jokowi, a former furniture businessman, cited a list of reasons why they should stay positive: a successful tax amnesty, a healthy foreign exchange reserve, an ongoing infrastructure push and a thriving tourism sector.

“I want to send a signal to businesses that the government is doing business as usual,” Jokowi told the CEOs at an event also attended by Coordinating Economic Minister Darmin Nasution, Finance Minister Sri Mulyani Indrawati, Trade Minister Enggartiasto Lukita and Tourism Minister Arief Yahya.

The domestic economic support is expected to come from the government’s tax amnesty, which has seen nearly Rp 95 trillion (US$7 billion) in redemption payments, Rp 3.9 quadrillion in declared assets and Rp 143 trillion in repatriated funds — the most successful outcome among countries that ran similar programs.

The government expects the funds to enter the domestic financial system and help move the economy.

Externally, the global economy is still undergoing a recovery from the hard-hitting 2008 global financial crisis, with China, the country’s top trading partner and the world’s second largest economy, slowing down.

But Jokowi gave one business tip to the CEOs: As the United States begins to see improvements in its economic conditions, and the US dollar strengthens as funds fly there, export local products to the world’s they should top economy.

“A stronger US dollar actually provides a chance for our exports to enter its market. We should take the chance and make use of it instead of being pessimistic,” he said.

Sri Mulyani pointed to the government’s credible state budget for the year 2017, which is supposed to lay out a strong foundation that provides a positive business climate.

Indonesia will continue to have ample room to maintain growth next year on the government’s credible budget, which will spend more on infrastructure in the regions, JP Morgan chief economist for emerging markets Jahangir Aziz said recently.

Several CEOs attending the forum also expressed their optimism about the economic situation amid news about another rally on Dec. 2. However, some business groups preferred to take a wait-and-see approach on expansion plans.

“The rallies will affect business […] because security and political certainties are important for the property business,” said Indonesian Real Estate Association (REI) chairman Eddy Hussy.

Indonesian Employers Association (Apindo) chairman Anton J. Supit also emphasized the importance of the government’s continued efforts to maintain a supportive investment climate through legal certainty, consistent policies and synchronized policies between the government and local administrations.

“We have to remember that in this globalization era, foreign businesspeople do not need to go to Indonesia to run businesses as they have many country options to run their operations. They actually want to invest here but we have to improve our business climate first,” he said.

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