Economy and Law Become Joko Widodo and Ma'ruf Amin Challenges - Photo by President Office

JAKARTA (TheInsiderStories) – On Oct. 20, Indonesian President Joko Widodo and Vice President Ma’ruf Amin was inaugurated for his second term of office. The problem that will be faced by the two leaders is in the economic fields.

As known, Indonesian economy has been stuck on a growth path of around 5 percent per year during his first term. A key economic challenge during his second term will be to implement economic reforms that will ramp up growth to achieve the Indonesian government’s growth target of 7 percent per year.

IHS Markit forecasts that Indonesian GDP will rise from US$1.0 trillion in 2018 to $3.3 trillion by 2030, creating strong growth in the total size of the Indonesian domestic consumer market over the next decade. While, GDP per capita is projected to rise from $3,900 in 2018 to $11,000 in 2030, which will be a key factor helping to drive the growth of the domestic consumer market.

A critical challenge for Widodo, said the analysts, his economic front bench during his second term, will be to create a more dynamic manufacturing export sector to boost export growth, as the country’ commodities exports, such thermal coal and LNG will no longer be able to drive rapid growth in Indonesian exports.

Former national development planning minister Bambang Brodjonegoro rated, that Widodo – Amin will face many prospects and challenges in leading his second term presidency. The challenges facing by the both leaders in the next five years will mostly come from global.  

While, East Java governor Khofifah Indar Parawansa expressed optimism following Amin’ commitment toward Indonesia’ new economic wave in the form of sharia economy. The sharia economy strengthening in her viewpoint could be realized by boosting the State sharia securities to to catch up with Malaysia that had already strengthened its sharia finance sector. 

But an activist from KontraS (The Commission for Missing Persons and Victims of Violence) Rivan Lee Ananda rated, that the president has failed to understand the essence of human rights and run the his “Nawacita Program“, which is the nine key development programs he introduced in 2014. 

Moreover, coordinator of the Indonesian Student Executive Body, Muhammad Nurdiyansyah said, will hold a demonstration today in the front of State Palace in Central Jakarta. The students wants to ensure Widodo – Amin’ leadership in favor of the people and humanity.

They also reminded, that there are agendas and promises that have not been completed by Widodo during the previous administration. Recently the students demanded the head of states to issued a anti-graft lieu of law and several other controversial laws

by Linda Silaen, Email: linda.silaen@theinsiderstories.com