Topic: BusinessLogistics

Last updated: April 1, 2019

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.

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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.

The current GDP of Indonesia is $ 868 billion after the decline in rupiah. Indonesia’s economic growth rate is still high compared to other countries. Indonesia’s target growth rate in 2015 is 5.7-5.

8 percent. However, Indonesia should not be able to achieve the target because at that point the Indonesian economy is 5.3 percent. Indonesia’s debt to GDP ratio is 46.3 percent, which is half of the total debt ratio since last eight years at 23.1 percent. The United States is the third largest investor since 2011 as well as three times the FDI increase over the past five years with USD36.5 billion achievement in 2014.

The issue of capability and tax administration capacity of Indonesia has resulted in a low tax collection of GDP of 13 per cent. Since 2012, Indonesia is pursuing a chronic current account deficit due to the slowdown in exports due to lower global demand especially in China. Besides that, it is also due to the Indonesian ban on mineral exports. However, Indonesia’s imports continue to increase due to the increase in middle-class consumers.

Furthermore, Indonesia’s current account deficit in 2014 reached 3 percent of GDP and has led President Jokowi to intend to have FDI to cover deficit shortages. 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, Indonesia is still ranked 114 out of 189 countries in the World Bank’s “doing business” index despite the increase in previous years. Originally, Indonesia had institutional problems. This is due to the corruption and infrastructure among the major contributing factors that are inadequate. The investment under infrastructure, especially from the private sector, is one of the challenges facing Indonesia.

Indonesia’s spread in 2014 is behind China, Vietnam and Thailand. The effect of priority treatment on state-owned enterprises as well as local governments has resulted in a lack of business opportunities.In the past decade the share of manufacturing sector in the Indonesian economy has declined due to the rapid urbanization, rising workforce and the current economic situation of Indonesia. In terms of its positive angle, Indonesia’s demographics in 2014 experienced rapid urban growth. According to expectations by 2030, there are twice as many Indonesians living in urban areas as compared to rural areas. 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. 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. The “one-stop service” base implemented at the Investment Coordinating Board has grown in the first few months under its rule. Hence, President Jokowi endeavors to increase legal certainty including trying to resolve the ongoing corporate criminal case.

This is because, aimed at improving the business investment climate. In addition, Jokowi has established a criminal team of criminal case operators and is monitored by some of his ministers. Based on Mr. Schwarz he praised President Jokowi’s intention to abolish oil subsidies, with the elimination of such subsidies can help the country from falling global fuel prices. The estimated at 12 percent of the 2015 budget could be saved as a result of the removal of oil subsidies. In addition, President Jokowi has also managed to address electricity problems with a high level of target for 2014-19. This is to achieve 100 percent electricity rate in rural areas and produce enough energy to support a sustainable annual growth rate of 7 percent.

In addition, through the Indonesian Health Card and Smart Card program, President Jokowi intends to make improvements in care and education.In order to achieve his targets, he encouraged bureaucratic reforms through the merger of ministry departments, creating new ministries and so on. 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, finally overall President Jokowi has 37 percent of the total seats in Parliament, while 36 percent of opposition parties are from Gerindra, PKS and Golkar. While the PD, PPP and PAN act like an independent party. However, Golkar and PPP have the potential to bring them to President Jokowi’s alliance.

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. Besides that, another big issue that was also raised by Mr. Schwarz is the current conflict between the KPK (Official Police) and the National Police (Indonesian National Police). This is not only undermines the anti-corruption movement but emphasizes internal tension.

Next, Mr. Schwarz believes that the success of President Jokowi’s reform agenda depends largely on his ability to manage political 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.

For answer the question, Mr. Schwarz said that although Jokowi had no maritime-related background but it was closely related to the concept of Indonesia’s maritime state. The economic downturn and lack of links between East and West Indonesia is still a major challenge for Indonesia’s development.

In addition, Indonesia needs to improve its competitiveness to curb the inequality of wealth distribution. The main thesis of national maritime connectivity is to reduce the cost of logistics in Indonesia and thereby improve the competitiveness of Indonesia’s production and export. In addition, the decision to allocate fuel savings through SOEs for infrastructure has led to controversy among economists.

For then, it is too early to say whether this will succeed or not.Another question that being asked to Mr. Schwarz is it the prospect of continuing the decentralization policy to prove that it may be too early to talk about decentralization at that time.

To answer the question, he said that an interesting development took place on the last day of SBY’s administration, which was the delay in Law 23/2014 which raised various authorities from district to provincial level. But there is no press coverage on this matter, and more attention has been made that rejected by Prabowo and supported by the Golkar leadership – to abolish direct elections at district and district level. In conclusion, since Jokowi took over not much post about decentralization. However, President Jokowi does not think about decentralization one way or another. 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”. Besides that, President Jokowi very concerned about the welfare of the people of the country despite the poor and the rich. They all being treated equally.


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