President Joko Widodo give an explanation on Indonesia Economy at IPC Car Terminal, Tanjung Priok Port in North Jakarta (05/09) - Photo by President Office

JAKARTA (TheInsiderStories) – Indonesian President Joko Widodo shouted there are two keys are needed to improve the country’ economic condition, namely exports and allowing other countries to invest in the country.

“If these two points can be made, the trade deficit can be resolved. The current account deficit can be overcome,” he said after releasing Toyota Car Exports in 2018 at IPC Car Terminal, Tanjung Priok Port in North Jakarta, Wednesday (05/09.

President Widodo stated that he has ordered the relevant minister in the cabinet to resolve the current economic problems in the shortest time. He targeted, at least in one year, existing problems have been resolved through exports and investment.

He also asked the ministers to shorten the investment permit that are too long-winded. Currently, the government has launched a single online submission (OSS) to ease the investment permit climates in Indonesia.

With a variety of efforts, he hope, Indonesia no longer need to worry with the global economic downturn. Foreign exchange reserves could also increase along with stable trading.

President Widodo also ensured that the government will continue to be vigilant and apply the precautionary principle in maintaining the stability of the Rupiah exchange rate. Therefore, the government will continue to coordinate with Bank Indonesia and Financial Service Agency, as well as businesses to have the same vision and views in the face of global dynamics.

“I think this strong coordination is the key so that the path is all in line,” said the President.

According to him, the weakening of the global exchange rate was not only experienced by the Rupiah but also by many countries.

“Not only Indonesia, this is a continuous external factor. Both those related to interest rate increases in America, the United States and China trade wars, the crisis in Turkey and Argentina,” he continued.

The concrete steps currently being taken by the government are the policy of using B20 (Biodiesel 20 percent) which is expected to reduce the amount of oil imports.

The next real step according to the President is to increase the use of the Domestic Component Level for all sectors. This is expected to reduce imports.

“This is what I convey to the ministry both to the private sector and to the SOEs so that local content is considered. If we can use all domestic components there will be savings of US$2-3 billion,” said Widodo.