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Foreign Ministry gears up for portfolio expansion
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President Joko "Jokowi" Widodo. (JP/Seto Wardhana)
T
he Foreign Ministry is preparing adjustments to its portfolio expansion, as questions linger about how the expansion would solve Indonesia’s weak exports and current account deficit.
President Joko "Jokowi" Widodo said last week that he planned to overhaul the Cabinet to address economic issues and boost exports and investments, including by giving the task of improving exports to the Foreign Ministry so that it would perform not only political diplomacy, but also economic diplomacy.
“We will follow the direction of [Jokowi’s planned] policy; what was already stated in public and indicated that the ministries in question would have their mandates adjusted,” Foreign Ministry acting spokesperson Teuku Faizasyah said recently.
The Foreign Ministry, according to Faizasyah, would make preparations based on the information received so far pending an official announcement that would allow the ministry to focus on making definite adjustments.
Jokowi said while the task to improve exports would be given to the Foreign Ministry, the Trade Ministry was to be merged with the Industry Ministry to focus on domestic trade. A new investment ministry tasked with bringing in foreign investment is also in the works, with the Investment Coordinating Board (BKPM) slated to be positioned under it.
But Jokowi’s plans raises more questions than answers, especially on how moving the portfolio from the Trade Ministry to the Foreign Ministry would improve exports and eventually the current account deficit.
Teuku Rezasyah of Bandung's Padjajaran University said the plan needed further study and Jokowi should have more consultations with various stakeholders, including businesspeople, investors and academics on how to transform this policy into a long-term strategy.
