More reforms needed, but will Jokowi take the risk?

Winarno Zain
Commissioner in a publicly listed oil and gas service company

PREMIUM

Jakarta / Wed, August 2, 2017 / 10:20 am

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)

With 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...