Site Loader
Get a Quote

The Indonesia’s President Joko Widodo also known as Jokowi. Jokowi is a self-made man from middle-class family. He graduated as a forestry degree and making a name in the furniture business. He was elected leader of Surakarta that was known as Solo in 2005, and he joined politics. His presidential campaign excited voters, because of his appeal as a common man, his regular use of social media and his focus on infrastructure development and corruption.
Jokowi is known to be a devoted heavy metal fan in a recent visit to Indonesia, Danish Prime Minister Lars Lokke Rasmussen gifted Jokowi a vinyl record of Metallica’s Master of Puppets. Jokowi intends to make Indonesia out of the recipient country to the giver country. That statement can be seen when Indonesia is the largest Islamic population country in the world.
Jokowi has against increasing hardline sentiments. He has appealed for support from the mainstream Islamic groups, and sets the president’s decision forbidding mass organizations considered to be against the ideology of the secular state of Pancasila. As president, Joko Widodo started an election offer in 2019, he took on an unfinished agenda to change the future of Indonesia’s economy.
USINDO is the United States – The Indonesian community in which the sole non-governmental organization focuses on improving the understanding of Americans on Indonesia and Indonesia’s knowledge of America. This relationship also reinforces both the country and the people. USINDO has opened a forum with Adam Schwarz, founder and chief executive officer of the Asian Group Advisor. He also advised senior executives on business opportunities in South Asia. This forum is about the President of Indonesia, the leadership of Joko Widodo.
Based on the journal about Joko Widodo: A New Paradigm for Indonesia Leadership? A USINDO Special Open Forum with Adam Schwarz Co-Founding Partner and Chief Executive Officer-Asia, The Asia Group in February 26, 2014 discuss about President Joko Widodo’s leadership during his first four months in office.
In the forum, Mr Schwarz gave his views on President Jokowi including, economic evolution, challenges and economic opportunities. It is also about what President Jokowi did, what went well and what was not so good and the terrain facing Indonesia.
Firstly, the economic trajectory. Indonesia is not yet a trillion dollar because its GDP is $868 billion, down in dollars due to the depreciation of the rupiah. Indonesia continues to have a sophisticated macroeconomic basis. The debt to GDP ratio was half-a-half from 46.3 percent to 23.1 percent since last eight years. As a result of inflows and increased consumption and investment, GDP per capita has grown at a steady pace from USD 1,273 in 2006 to USD1,810 in 2014, in the continued US dollar.
Furthermore, GDP with capacity and capacity issues with the administration of the Indonesian tax collection resulted in lower tax revenue of about 13 percent. Indonesia has also a chronic current account deficit over the past two years due to the slowdown in exports due to lower global demand, especially in China, and Indonesia’s ban on mineral exports. Indonesia’s current account deficit is now almost 3 percent of GDP, so President Jokowi is eager to get new FDIs to cover the deficits. There is also a weakness in the capital account in relation to Indonesia’s government debt, given that almost one-third of it is held by foreigners.
Secondly, is a long-term challenge and opportunity. According to Mr. Schwarz, one of the biggest challenges facing Indonesia is lack of effort. Indonesia is still ranked 114th out of 189 countries in the World Bank’s “Doing Business” index, not comparing with Indonesia’s struggling countries despite a slight increase in recent years.
Another challenge is under-investment in infrastructure, especially from a private sector. Only 3 to 4 percent of GDP, Indonesia’s investment in infrastructure is behind China, Vietnam and Thailand. The nationalist fundamentals of the economy in the form of non-tariff protection measures and barries have increased. All the three challenges that have become the basis of nationalist, infrastructure and weak institutions have ensured the easy of doing business in Indonesia is low.
Demographically Indonesia is experiencing rapid urban growth, which should provide a major boost for growth in the up coming decades. It is an effective institutional and infrastructure challenges that has been effectively addressed and Indonesia utilizes its great natural resources and demographic bonuses. It can position itself as an important global economic player in the next decades.
Thirdly, 100 day renewal programs. As we all known, President Jokowi is the first democratically elected president in Indonesia who has power even though the political elite, and not as a result of elite ranking negotiations. It is represents of how much Indonesia has changed economically, demographically, as well as politically, and has surprised the political elite.
According to Mr. Schwarz, President Jokowi gives priority to three other sectors which is infrastructure, manufacturing, and tourism. He is aware that Indonesia has posted poor performance in ‘doing business’ surveys. The “one-stop services” policy implemented at the Investment Coordinating Board has expanded further in the first few months of his office than under his predecessors. Besides that, President Jokowi is also working to increase legal certainty including trying to resolve ongoing corporate crime case as well as to improve the business investment climate.
Based on Mr. Schwarz he was praised President Jokowi’s move to abolish fuel subsidies, only a few weeks after he entered the post. The move has also helped by the fall in global fuel prices. The removal of all subsidies is estimated to have saved about 12 percent of the 2015 national budget, which can be shifted to more “productive sectors.” Other problems being tackled by President Jokowi is electricity, with a very ambitious target for 2014-2019 to achieve 100 percent electrification rate in rural areas and produce enough energy to support a sustainable annual growth rate of 7 percent.
Through Indonesia Health Card and Smart Card programs, the improvements in health care and education are being implemented. According to Mr. Schwarz, in order to achieve his goal President Jokowi encourages bureaucratic reform through the merge of ministries, creates new ministries, streamlining rules, and enhances coordination among government agencies. He also emphasizes the importance of public and media relations and has commissioned a ministry media review.
Forthly, is the uncertain political field. With the support of PDIP, PKB, Nasdem and Hanura, the coalition of President Jokowo has 37 percent of the total parliamentary seats, while the opposition (Gerindra, PKS and Golkar) has 36 percent. Three other parties, PD, PPP and PAN, are nominally in the opposition camp but act as an independent party. President Jokowi’s party, PDIP, may eventually be the most difficult political challenge he must face, given the strained relationship between the President and the PDIP Chairperson Megawati Soekarnoputri.
Another big issue raised by Mr. Schwarz is the current conflict between KPK (the anti-corruption agency) and Polri (the Indonesian National Police), which not only undermines the anti-corruption movements but also emphasizes the internal tension within President Jokowi’s own coalition. Besides that, Mr. Schwarz believes that the success of President Jokowi’s reform agenda is largely dependent on his ability to manage politics elites that are resistant to reform.
In the forum, Mr. Adam Schwarz has been asked about how President Jokowi leadership’s going on through the journey of Indonesia. There is a question about what kind of political support available to allocate cuts for oil subsidies for infrastructure, for supporting Jokowi’s vision of Indonesia as a maritime country. Mr. Schwarz said that, Indonesia needs to improve the competitiveness of islands outside Java to contain the inequality of wealth distribution which, if not examined, could eventually pose a risk to national unity. It’s because the economic gap of the relationship between East and the West. Based on the main thesis of maritime national relations is to reduce the cost of logistics in Indonesia and thereby overcome the competitiveness of Indonesian production and exports.
As a conclusion, if I’m one of the Indonesian citizen I will vote Jokowi as a President because of his characters and he performs the best responsibility. Moreover, I like him because he is very proud of the scheme he started to give 92m Indonesians access to cheap health care, along with one that provides 19m student who need money for books, bags and shoes, and another that gives 10m of the country’s poorest families direct income support. Like adding their “purchasing power”.

Post Author: admin