President Jokowi: Gov’t Should Work Hard to Lead Big Transformation in Indonesia

Photo caption: President Jokowi during the Opening of ICMI National Work Meeting 2022 held virtually at Bogor Presidential Palace, West Java, on Saturday (01/29). (Photo: Bureau of Press, Media, and Information Affairs of Presidential Secretariat/Muchlis Jr)

The Government has announced it is carrying out several big transformations so Indonesia will be more competitive in dealing with current global uncertainties and competitions.

President Joko “Jokowi” Widodo has also emphasized that the Government is working hard to lead the transformation.

“The Government is working hard to lead several big transformations. We are doing structural transformation so Indonesia will be more competitive to deal with today’s global hyper competition,” President Jokowi said during the Opening of ICMI (the Association of Indonesian Muslim Scholars) National Work Meeting 2022, at Bogor Presidential Palace, West Java, on Saturday, held virtually.

Various transformations carried out by the Government, the President added, started from industry downstreaming, digital transformation, transition towards green energy, and establishment of the new capital city.

“We have to provide vast job opportunities. We have to improve the welfare of the farmers, fishermen, and industrial workers. We have to facilitate entrepreneurs of Micro, Small, and Medium Enterprises to upgrade themselves with digitalization. We have to support the improvement of domestic products, so many things that we have to carry out,” the President explained.

The Head of State also stressed the importance of investment in supporting the efforts.

“Therefore, we have to ease investments, be it big, medium, small, domestic, or foreign investments. It is our aim to set the Omnibus Law on Job Creation, to create vast job opportunities and to increase domestic added value,” he said.

Furthermore, President revealed that the Government is currently carrying out downstreaming, among others, in mine, oil, and gas sectors aimed to give more significant added values in Indonesia, to provide job opportunities, and also to save the reserves.

“I think this is no longer the era of exporting raw materials that will make other countries enjoy the added value, such as what we did in the era of VOC (the Dutch East India Company),” he further explained.

The President added that the Government has also proven that by downstreaming, the country can enjoy a very significant added value, for instance, the nickel downstreaming that has been done since 2015 and gives significant impacts on exports and balance of trade.

“The export of steel in 2021 reached USD20.9 billion, more or less Rp300 trillion. It has experienced an increase from only USD1.1 million in 2014. From Rp15 trillion, then it climbed up to Rp300 trillion. It is due to the domestic increase of added value,” he said.

Not only nickel, President added, the Government will gradually stop the exports of raw materials from mining, such as bauxite, copper, tin, and gold ores, and carry out downstreamings.

In addition, the Government will also carry out downstreamings in other sectors namely, among others, the farming sector.

“Farmers should be robust in the on-farm activities, Innovation in the farming and animal husbandry should be encouraged. But we must not just stay there, the fertilizers, the seeds, and so on. Groups of farmers and animal husbandry farmers, cooperatives of farmers and animal husbandry farmers should also get into the off-farm activities, the downstreamings. Once again, it is intended to give added value to the farmers since the off-farm activities may give the most fruitful benefits and create more job opportunities as well,” he said.

Currently, the Government is also carrying out digital economy transformation vigorously. Indonesia’s digital economy potential in 2025 is estimated to reach USD124 billion.

“We also have 2,229 start-ups, one decacorn and eight unicorns, and there are already 8.4 million Micro, Small, and Medium Enterprises that have used digital platform to sell their products in the last five years, and surely the number will keep increasing,” the President said.

Moreover, the Government continue to make efforts to realize energy transformation towards green energy.

President Jokowi also mentioned that Indonesia has the potential of renewable new energy as many as 418 gigawatts, be it in the forms of geothermal energy, wind energy, solar panel energy, biofuel energy, tidal energy, or hydro energy.

“Decarbonization of transportation sector also started with the development of mass urban transport, and we have also started the development of the world’s biggest green industrial park in North Kalimantan,” he added.

President Jokowi further said that the establishment of the new capital city in East Kalimantan is an important part of the transformation, adding that the capital city program is not only about relocating the Government’s buildings, but also to shift to way of working and way of thinking that based on modern economy and to develop a more just and inclusive social life.

“We will make the capital city program as a transformation showcase, be it in the sectors of environment, way of working, economy, technology, and so on including in sectors of health service and education with more qualities. We also put forward the idea of a more diverse and tolerant society that uphold good ethics and deeds,” he remarked. (FID/UN) (AW/EP)