Looking Widodo’s Economic Programs for 2019-2024

JAKARTA (TheInsiderStories) – Indonesia’ presidential candidates Joko Widodo promised to boost the economic program if won the 2019 Presidential Election. This was delivered by him in a political speech at Bogor, West Java, Sunday (02/24).

To achieve this, there were five priority programs carried out by him like the development of human resources, foster entrepreneurship, productive and competitive economic structure, equitable and equitable development, and strengthen gender equality and empowerment of women.

Widodo said, the development of qualified human resources is needed so that Indonesia can have competitiveness in the era of Industry 4.0.

“We are facing forward in our knowledge, ideas, and this becomes a very deep understanding of us. Then we enter industry 4.0, big data issues, all of them are the basis and economic building that emerges from ideas and education debates,” said the incumbent.

He explained that human development will be intensified, one of which is by accelerating the implementation of the 12-year compulsory education program. He will also help finance schools for children from families unable to use the Smart Indonesia Card.

Widodo will also improve the quality of higher education by increasing the endowment of education and research funds which currently amount to RP66 trillion (US$4.71 billion). He promised to be increased to reach Rp100 trillion within the next five years.

The economy must also be built by growing entrepreneurship. According to him, the demographic bonus and the presence of the Industrial 4.0 must be faced by growing new entrepreneurs, especially from the millennial generation, facilitated by the provision of educational and entrepreneurial training facilities involving the education community and the creative economy sector.

In addition, Widodo also committed to accelerating Santripreneur‘ growth through partnerships between boarding school and similar religious education institutions, as well as social entrepreneurs by providing incentives for social entrepreneurial activities.

To encourage and facilitate new types of businesses, he promised to develop more adaptive regulations, guarantee business convenience and increase facilities for coworking space and facilitate access to the internet in public places. New entrepreneurs will also be given access to capital by using a non-conventional financing model to facilitate those who do not have assets.

Furthermore, the acceleration of infrastructure development and structural reforms has paved the way for the foundation of a stronger and more competitive economic structure. With this foundation, Widodo said, his government will continue efforts to make the economy become more robust, productive, independent and competitive so that it can open more jobs, reduce open unemployment, reduce poverty and reduce inequality.

For this reason, there are six action programs offered: strengthening the implementation of a national economic system based on Pancasila, increasing added value from infrastructure utilization, continuing the revitalization of industry and its supporting infrastructure to meet the Industry 4.0, developing new economic sectors, sharpen structural and fiscal reforms, develop employment reform.

The next priority program is equitable and equitable development. Widodo explained that this could be realized by equitable redistribution of assets, develop cooperative productivity and competitiveness, develop people’ economy, reform of the social protection guarantee system, continue to use village funds to reduce poverty and inequality in rural areas, accelerate the strengthening of the family economy, develop regional economic potential for equitable development between regions.

Finally, the existing president also stressed the importance of strengthening gender equality and empowering women. For Widodo, women are the key to the country’s success in grounding the Sustainable Development Goals.

Therefore, it is important to encourage Indonesian women to have important roles in the family and public sphere. Women are encouraged to move the family and community economy. Then it needs to be protected from all forms of violence and discriminatory actions.

He reported, during his administration, there have been significant economic improvements.

“This country has never had inflation below 4 percent, if it is now below 3 percent. And it shows stability, purchasing power and price similarity throughout Indonesia. This component becomes important to show the turmoil that is a downward economic indicator,” he said.

Widodo admitted, the average economic growth in the past four years had reached 5 percent. This situation stimulates the emergence and growth of community participation in the economy. Investment still enters.

Unemployment is relatively small, below 10 percent. Poverty falls below 9 percent. The gap between the rich and the relative poor fell, around 0.4 or 0.39, he added.

But some economic observers showed Widodo’ failure during his four years of leadership. The Institute for Development of Economics and Finance researcher Bhima Yudhistira Adhinegara, for example, said that several economic indicator targets in the Widodo 2015-2019 national medium-term development plan were not reached. Starting from economic growth, poverty rates, to the unemployment rate.

Based on the 2015-2019 part time evaluation document signed by the Minister of National Development Planning Bambang Brodjonegoro in August 2017, the 2019′ economic growth target is written to reach 8 percent.

In the table of achievement of the 2015-2019 economic growth main target, the economic growth targets in 2015 and 2016 were missed. In 2015, the target was 5.8 percent, but the realization was only 4.88 percent.

As for 2016 the economic growth target is 6.6 percent, but the realization is 5.02 percent. In 2017, economic growth reached 5.07 percent of the 5.2 percent target. However, according to Statistic data, the growth was the highest since 2014. The economic growth in 2018 only reached 5.17 percent.

According to him, the economic growth target of 8 percent by 2019 is too high despite the fact that Indonesia’s economy is very dependent on commodity prices.

“The cause of stagnation in economic growth is also because the portion of the manufacturing industry continues to decline against GDP. Even had under 20 percent. In the Widodo era, we jumped too quickly into the service sector, leaving the industry to decline,” Adhinegara said when commenting on the incumbent’ speech.

Bank Mandiri economist chief’ Anton Gunawan also criticized Widodo’ economic program while mentioning the government’s future focus should be more on efforts to reduce regional disparities.

“This must be resolved. If planning is not going to be difficult in the future. For example, it can be said that food is good but in reality we are always under pressure from world food prices. This is one of the complex issues that must be considered,” he said.

According to Gunawan, the government currently needs an economic outlook that looks more outward. He considers the current development of the world economy to make each country dependent on each other.

A simple example with iPhone production. According to him there is currently no iPhone that is purely made by a country. The device is definitely the product of several countries which are put together in one form.

US$1: Rp14,000

Written by Lexy Nantu, Email: lexy@theinsiderstories.com