Challenging global and domestic economic landscapes have become economists' main concern for President Joko "Jokowi" Widodo's economic team.
he future economic team of newly inaugurated President Joko "Jokowi" Widodo and Vice President Ma'ruf Amin will face several challenges ahead as industries falter, trade deteriorates and a skills gap amid rising automation threatens job growth, economists have said.
Think tank Institute for Development of Economics and Finance (Indef) senior economist Didik J. Rachbini said Jokowi’s economic team in his first term in office left much to be desired as it lacked the teamwork needed to create efficient policies, citing manufacturing as an example of a sector that required change.
Didik said the manufacturing sector, which he stated had received little attention in the past five years, needed special treatment from the future economic team so that exports could be revived.
“There is a crucial need for the [new] government to revive industry, to increase exports in order to reduce the current account and trade deficits,” he said at a business dialogue attended by former vice president Jusuf Kalla in Jakarta on Thursday.
“A lot of industries have suffered setbacks due to weak competitiveness because of inefficient bureaucracy, costly logistics and [complicated] licensing.”
Without proper handling of the industrial sector, he went on to say, it would be difficult to increase the country’s exports amid growing competition from other Asian countries.
In a speech made after taking his oath of office on Sunday, Jokowi vowed that human resources development would be his administration’s priority going forward while simplifying bureaucracy and working with the House of Representatives to create omnibus laws on job creation and empower micro, small and medium enterprises, among other things.
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