Interview:President Joko Widodo How will the new administration address investor concerns and improve the investment climate? PRESIDENT JOKO WIDODO: Indonesia is a country open to investors. We are working hard to fix the issues that have traditionally kept investments away, and we want to convey the message that we are doing everything we can to improve the investment climate in the country. We…
Interview:Vice-President Muhammad Jusuf Kalla Investment procedures will be streamlined under this administration. How can better coordination among new ministers be achieved to this end? VICE-PRESIDENT MUHAMMAD JUSUF KALLA: Our government includes members from a range of different backgrounds, including the public sector, academia and business. The diversity of our team will help bring a balanced…
Interview:Ngalim Sawega How does Eximbank assist Indonesian exports? NGALIM SAWEGA: In 2014 the credit banked by Indonesian exports in the banking industry grew modestly, despite exports decreasing due to weak demand in the global market and the decline of commodity prices. Indonesia Eximbank commits to supporting national exports through continuously implementing financing, guarantees and…
Interview:Franky Sibarani It is argued that new investments should help position Indonesia as a production base, rather than an expansion market. Will this be a focus for BKPM? FRANKY SIBARANI: BKPM has built a strong relationship with the relevant ministries to formulate policies as far as investment climate issues are concerned, including labour, electricity and dispute settlement, among…
Interview:SD Darmono How can private, local firms help address investment obstacles and boost foreign direct investment (FDI)? SD DARMONO: Before entering any country, foreign investors must learn about its local regulations, cultures, habits, markets and politics. In Indonesia’s case, they can seek the guidance of the Indonesia Investment Coordinating Board. The whole investment ordeal,…
Interview:Budi G Sadikin Can Indonesia’s banks boost micro, small and medium enterprise (MSME) lending while preventing non-performing loan (NPL) levels from growing? BUDI G SADIKIN: The MSME segment plays a significant role, as it encapsulates 99% of all businesses in Indonesia and often serves as the propeller of the economy. In addition, the government is trying to boost credit to MSMEs…
Interview:Basuki “Ahok” Purnama How will you address concerns about bureaucratic inefficiencies hampering Jakarta’s development, especially with regards to infrastructure projects? BASUKI AHOK: If Indonesia is to become more effective and efficient in budget spending, then we will have to improve bureaucratic procedures on all levels. Jakarta needs to be a role model for the rest of the…
Interview:Sumit Dutta What measures should Indonesia implement to harness its growth potential going forward? SUMIT DUTTA: Indonesia is already one of the fastest-growing markets in the world. In terms of GDP growth in the last decade, Indonesia ranked third after China and India. By size of the economy, of the G20 countries Indonesia ranked 16th, with China, Japan, India and South Korea the…
Interview:Jahja Setiaatmadja How might the lack of liquidity affect Indonesia’s GDP growth moving forward? JAHJA SETIAATMADJA: This is a very important issue at this particular moment for Indonesia’s banking sector. We have to keep a close eye on the level of liquidity because it is running short, and this can have a big impact on our whole economy. In fact, we are already seeing GDP growth…
Interview:Bambang Brodjonegoro How will the government prioritise the reallocation of savings from the fuel subsidies cut to address the country’s economic weaknesses? BAMBANG BRODJONEGORO: Savings from the new subsidy scheme will be allocated to infrastructure development, particularly basic infrastructure promoting food security, energy security and connectivity. Indonesia is the largest…
