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

Name of the game: Economic diplomacy

See you soon: Transportation Minister Budi Karya Sumadi (center right) and Foreign Minister Retno LP Marsudi (center left) embrace at a farewell gathering of President Joko “Jokowi” Widodo’s Working Cabinet at the State Palace in Central Jakarta on Friday

Dian Septiari and Marchio Irfan Gorbiano (The Jakarta Post)
Jakarta
Thu, October 24, 2019

Share This Article

Change Size

Name of the game: Economic diplomacy

S

ee you soon: Transportation Minister Budi Karya Sumadi (center right) and Foreign Minister Retno LP Marsudi (center left) embrace at a farewell gathering of President Joko “Jokowi” Widodo’s Working Cabinet at the State Palace in Central Jakarta on Friday. Both ministers were reappointed to their respective positions for Jokowi’s Onwards Indonesia Cabinet, which was unveiled on Wednesday. (JP/Seto Wardhana)

Retno LP Marsudi has been reappointed as Indonesia's top diplomat, with a doubling down of economic diplomacy her main goal for the next five years.

President Joko "Jokowi" Widodo on Wednesday inaugurated the 38 members of his new Cabinet, including Retno, who led Indonesia in securing seats on the United Nations Security Council and the UN Human Rights Council while she was serving during Jokowi's first term.

“In the last five years, we tried our best in four priorities: protecting the Unitary State of the Republic of Indonesia [NKRI] and its interests, protecting Indonesian citizens, economic diplomacy and also our contribution to the region and the international stage,” Retno said in an interview with Kompas TV at the Presidential Palace complex after the Cabinet inauguration.

For the next five years, she said she would keep the same priorities while expanding and strengthening Indonesia’s economic diplomacy, in accordance with Jokowi’s pledges to boost trade and investment to spur growth.

Plans to give the Foreign Ministry more of a mandate in economic diplomacy by putting the Trade Ministry’s international trade functions under it and to merge the Trade Ministry with the Industry Ministry to focus on domestic trade appeared to have been largely abandoned by Jokowi on Wednesday.

Jokowi is maintaining the Trade Ministry, giving its ministerial position to National Awakening Party (PKB) politician Agus Suparmanto. “Exports, imports, trade, current account — these fall under your jurisdiction,” Jokowi said while introducing all members of the Cabinet to the public.

The restructuring idea was floated by Jokowi in August as part of a wider effort to boost exports and narrow current account deficits.

However, analysts have criticized it, saying that the real problem with Indonesia’s economic diplomacy was rooted in domestic issues, such as the ease of doing business. Observers have also suggested that such structural changes had to be done prudently.

However, following the inauguration the new Cabinet ministers, officials stopped short of explaining whether the plan has been formally canceled.

The Foreign Ministry's acting spokesperson, Teuku Faizasyah, said, without further elaboration, that the “Foreign Ministry’s focus would be aligned with Jokowi’s priorities for the next five years”.

Retno, meanwhile, said that economic diplomacy could not be separated from the reforms at the domestic level.

“This is about a concerted effort to increase exports, attracting investment and building our human resources. So during the next five years, our efforts will yield more optimal results,” she said, adding that in the last few years Indonesia had focused on reducing trade barriers and increasing investment in its nontraditional markets, especially in Africa.

Former foreign minister Hassan Wirajuda said Indonesia’s ambassadors abroad hardly face any challenges in carrying out economic diplomacy to help the country secure trade and investment deals, but the main obstacles came later from the situation at home.

He said Indonesian ambassadors often complained to him that many investment projects had to be delayed for years because of permit issues.

“Do you think Indonesian diplomats are not working hard enough?" Hassan asked reporters on Tuesday. "The problem is not
in diplomats who work to facilitate trade, the problem is in the country."

In his inauguration speech on Sunday, Jokowi pledged that economic and bureaucratic reforms were high on his agenda.

The President said his administration would carry out five initiatives during his second term, such as developing a dynamic and hardworking workforce using an endowment fund, industrial cooperation and technology, continuing infrastructure development and simplifying regulations by creating two omnibus laws, one on job creation and one on small business empowerment.

Other initiatives include simplifying bureaucracy by reducing the number of civil service echelons from four to two and transforming the economy from one that is dependent on natural resources to one that is competitive in modern manufacturing and services.

{

Your Opinion Counts

Your thoughts matter - 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.