Jokowi-JK still has a lengthy to-do-list

Jakarta. Today, Indonesia marks two years of President Joko Widodo and Vice President Jusuf Kalla administration. Indonesia has been recording positive performances during the period, even though the administration still has a lengthy to-do-list.

Some economist and businessmen said that in general, the administration of Joko Widodo-Jusuf Kalla (Jokowi-JK) has shown good performance, but still has room for improvement.

Executive Director of Indonesian Employers Association (Apindo) Agung Pambudi appreciated some economic policies shaped by President Joko Widodo administration. For an example, the policy on transferring of energy subsidy to the more productive sector.

However, Agung estimated that the government still needs to improve the economy, mainly to manage the credit interest rate to single digit. “7%-8% will be very good”, he said.

Meanwhile, Chairman of Jakarta Regional Office of Indonesian Chamber of Commerce and Industry Sarman Simanjorang said that the current administration has made some fundamentals improvements, however, the efforts have not yet reached the optimum results.

Sarman also appreciated President Joko Widodo strategy in developing land, sea, and air transportations. The policy is effective to reduce the logistic costs, as well as to boost domestic economic progress.

Economic observer at Indonesian Institute of Science Latif Adam said the current administration still has room for improvement. On fiscal aspect, the government needs to launch reform on the income side. On the side of micro economy, government should improve the production, as well as industry and agricultural trade system.

Economist at Kenta Institut Eric Sugandi stressed the poverty and social gap problems. According to Eric, the social gap has declined during President Joko Widodo administration mainly because of the decrease in purchasing power of middle-high class people. “At the same time, people, who are at slightly above poverty line are vulnerable to down grade to the group of poor people”, he said.

The Chairman of Indonesia’s Retail Employers Associaton (Aprindo) Tutum Rahanta said that in the future JKW-JK administration needs to continue bureaucracy reform in an overall manner. According to Tutum, the improved bureaucracy system will lead to betterment in other sectors.

Agenda for improvement

Coordinating Minister for Economic Affairs Darmin Nasution said that the current administration has spent efforts to make improvements, mainly in infrastructure sector. For an example, the government has boosted capital expenditure to develop infrastructure sector.

However, Darmin admitted that the government is still facing a lengthy to-do-list, including improving investment climate to attract foreign investors. “The government also needs to accelerate the implementations of some economic policies”, he said.

Minister of Trade Enggartiasto Lukita admitted that to date the food price control is not yet optimal, as to date the prices of food commodities remain high. “The President has given warning (related to the problem), since the price reduction remains low”, he said.

(MUHAMMAD FARID/Translator)