The economic team of the Indonesia Onward Cabinet that started working yesterday is dominated by new faces, mostly from or affiliated with political parties.
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The economic team of the Indonesia Onward Cabinet that started working yesterday is dominated by new faces, mostly from or affiliated with political parties.
President Joko “Jokowi” Widodo in his inauguration speech as President for the 2019-2024 term on Oct. 20 said that his government had to lay a strong foundation to move toward the 100th year of Indonesia in 2045.
The President is aiming for Indonesia to be included in a group of advanced countries with annual per-capita income of Rp 320 million. At present, according to World Bank data, annual per-capita income of Indonesia\'s population is US$3,927, which is equivalent to Rp 55.3 million per year.
In order to reach the targeted income level within 26 years, the President stated, the foundation must be built from now on. A key aspect of this is consistently high economic growth above 5 percent, which in turn requires political stability.
The World Bank and International Monetary Fund have repeatedly revised down global economic growth predictions. The trade war between the United States and China is still looming and the impact could be felt in the medium term if an agreement is not immediately reached. We also face geopolitical risks in East Asia and in the Middle East. The big trend seen in advanced countries is a slowdown of growth since the 2008 economic crisis. With China\'s economic growth this year only around 6 percent, global trade will slow down.
Finance Minister Sri Mulyani Indrawati said the risks are very real. Although Indonesia is relatively resistant to financial market shocks, medium-term cyclical pressure is very real.
A slowdown in global trade will affect Indonesian exports. We face a current account deficit and low tax ratio at a time when we need to create quality jobs, accelerate industrialization and ensure food security in the face of climate change. Other challenges are social inequality, persistent corruption and a decline in competitiveness.
Therefore, we hope ministers with economy-related portfolios have the competence, track record and integrity to seize opportunities accurately and quickly.
We see that a number of economic ministers from the previous Cabinet are strengthening the Indonesia Onward Cabinet. These are Coordinating Economic Minister Airlangga Hartarto, Coordinating Maritime Affairs and Investment Minister Luhut Pandjaitan, Finance Minister Sri Mulyani Indrawati, Public Works and Housing Minister Basuki Hadimuljono and Transportation Minister Budi Karya Sumadi. On the other hand, most new faces come from political parties or are affiliated with parties, while there are four ministers with a professional background and without political party affiliation.
We understand concerns on the part of certain circles that the new economic team would not perform optimally because of conflicts of interest with political parties. However, we must give them the opportunity to get down to work to meet the expectations of the people.