Government takes some steps to overcome global weakening

President Joko Widodo. (Photo: Bachren)

IO, Jakarta – President Joko Widodo (Jokowi) has prepared several macroeconomic policy plans to overcome and anticipate the weakening of the global economy. Mitigation measures undertaken in 2020 must be strengthened for 2021.

“I ask one more time to calculate in detail the risks of weakening the global economy, including the consequences of the outbreak of the Corona Virus that occurred earlier this year and the possibility of further economic impacts in 2021. Then the mitigation measures we undertake in 2020 must be strengthened again in 2021,” President Jokowi said in the Jakarta president’s office, Monday (9/3).

“The draft fiscal policy of 2021 can strengthen the resilience of the national economy that can overcome various risks that may arise and be able to protect our country’s economy from global economic turmoil. This also needs to be underlined,” the President added.

The President said that despite facing global economic pressure, Indonesia must still be optimistic. “Our economic growth last year, in 2019, was recorded at 5.02 percent, this growth is quite good amid the uncertainty of the global situation and the possibility of a recession that has occurred in several countries,” he said.

The President also requested that structural reforms can be carried out consistently. “Especially after the Work Creation Omnibus Law and the Tax Omnibus Law, this will create new momentum for our country’s economic growth,” Jokowi said.

Furthermore, President Jokowi also reminded that the economy must grow in quality so that fiscal policy in 2021 can provide stimulus. “Furthermore, it will also provide stimulation, increase the competitiveness of the national economy, create added value, and encourage equitable development. Investment attractiveness must continue to be increased to open up more new jobs, incentives for the growth of the manufacturing industry must also be provided, especially those related to the labor-intensive industry,” explained the President.

The President requested that the downstreaming of the industry must continue to be encouraged, including in Eastern Indonesia. “Strengthening of micro, small, and medium enterprises must continue to be done so that they can advance to the national supply chain and global supply chain. I ask that special attention be given to the People’s Business Credit program, Mekar (Fostering a Prosperous Family Economy), UMI (Ultra Micro Financing) and also the Micro Bank Endowment, “Jokowi said. Furthermore, the President requested that in 2021 the trade balance and current account deficit must decrease further. 

“So it is necessary to give priority to the development of the import substitution industry, then to continue the bioenergy policy to the B40 and B50 programs, then to breakthrough steps to increase our oil lifting,” he said.

Finally, the President emphasized the strengthening of superior Human Resources (HR) through education, health, vocational training, pre-employment cards, and poverty alleviation programs. (des)