TheJakartaPost

Please Update your browser

Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.

Jakarta Post

More reforms needed, but will Jokowi take the risk?

To boost investment, the economy should be made more open in its trade and investment. But this would pose a dilemma for Jokowi.

Winarno Zain (The Jakarta Post)
Premium
Jakarta
Wed, August 2, 2017 Published on Aug. 2, 2017 Published on 2017-08-02T09:19:47+07:00

Change text size

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
More reforms needed, but will Jokowi take the risk? President Joko "Jokowi" Widodo speaks to journalists on the sidelines of the inauguration of three geothermal power plant (PLTP) infrastructure projects worth Rp 6.18 trillion (US$532.07 million) belonging to state oil and gas firm Pertamina in Manado, North Sulawesi, on Dec. 27. (JP/Lita Aruperes)

W

ith President Joko “Jokowi” Widodo having entered the second half of his term, it seems it could be difficult for him to achieve the desired objectives of his economic agenda by the end of his term in 2019.

Then, economic growth would be hovering at around 5 percent, and given current conditions, there is no way it could expand to 7 percent in 2019, as he set in his Nawacita (nine goals) campaign platform.

Investment growth remains weak. Foreign direct investment totaled only US$2.5 billion in the first quarter of 2017, less than half of the figure recorded in the third quarter of 2016.

The construction of many infrastructure projects has moved slowly, been delayed or is being reviewed. Electricity generation may fall short of the additional 35,000 MW target. With a lack of interest from private investors, a shortage of funding would bedevil Jokowi’s signature programs in infrastructure development.

The tax revenue target has to be lowered and the budget deficit is creeping upward, nearing the legal threshold of 3 percent. Although the outcome of the tax amnesty was better than that in other countries, it failed to meet the government’s target.

Although Bank Indonesia has kept monetary policies accommodative, bank lending growth has been weak since December 2015.

In the energy sector, oil production has fallen and the oil and gas deficit in the balance of payment has climbed. The deficit reached $4 billion in the first half of 2017, double the figure in the same period last year.

to Read Full Story

  • Unlimited access to our web and app content
  • e-Post daily digital newspaper
  • No advertisements, no interruptions
  • Privileged access to our events and programs
  • Subscription to our newsletters
or

Purchase access to this article for

We accept

TJP - Visa
TJP - Mastercard
TJP - GoPay

Redirecting you to payment page

Pay per article

More reforms needed, but will Jokowi take the risk?

Rp 35,000 / article

1
Create your free account
By proceeding, you consent to the revised Terms of Use, and Privacy Policy.
Already have an account?

2
  • Palmerat Barat No. 142-143
  • Central Jakarta
  • DKI Jakarta
  • Indonesia
  • 10270
  • +6283816779933
2
Total Rp 35,000

Your Opinion Matters

Share your experiences, suggestions, and any issues you've encountered on The Jakarta Post. We're here to listen.

Enter at least 30 characters
0 / 30

Thank You

Thank you for sharing your thoughts. We appreciate your feedback.

Share options

Quickly share this news with your network—keep everyone informed with just a single click!

Change text size options

Customize your reading experience by adjusting the text size to small, medium, or large—find what’s most comfortable for you.

Gift Premium Articles
to Anyone

Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!

Continue in the app

Get the best experience—faster access, exclusive features, and a seamless way to stay updated.