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Jokowi Says Political Stability is Critical Ahead of Indonesia's Government Transfer

25 June 2024 10:57 WIB

TEMPO.CO, JakartaPresident Joko Widodo or Jokowi paid special attention to the necessity of political stability ahead of Indonesia’s government transfer. 

"We must take note of the political stability. It’s important to avoid political turbulence to ensure the government transition is smooth-running,” he said on Monday, stating that political stability must be maintained so Indonesia's competitiveness at the global level remains unaffected.

Jokowi's government will end on October 20. He will be replaced by Prabowo Subianto, who has Jokowi’s son as vice president, Gibran Rakabuming Raka. 

Prabowo Subianto did not form a special transition team for the current government transfer process. The president-elect instead for a synchronization team filled with Gerindra Party members. Gerindra Party Daily Chair Sufmi Dasco Ahmad leads the task force with Gerindra Secretary General Ahmad Muzani as deputy head. Team members include Thomas Djiwandono, Budisatrio Djiwandono, and Prasetyo Hadi.

During his presentation at the cabinet meeting yesterday, Jokowi brought up Indonesia's growing competitiveness in 2024. Referring to IMD or World Competitiveness Ranking data, the former Mayor of Solo said that Indonesia is currently in the 27th position, beating Malaysia, Japan, and the Philippines.

He said there was a tendency for countries such as Malaysia and Japan to lose competitiveness ranking due to weakening currencies and decreasing productivity. President Jokowi claims that Indonesia's high-ranking competitiveness is due to governance, business, and the economy.

"Meaning, political stability, currency stability, and boosting productivity is important,” said Jokowi.

Prabowo Team's State Budget Commitment

The new government’s synchronization team has discussed the 2025 State Budget with Finance Minister Sri Mulyani and Coordinating Minister for Economic Affairs Airlangga Hartarto at the Directorate General of Taxes on Monday, June 24, 2024.

“They have assured that they are committed to a deficit below 3 percent,” Sri Mulyani said in a press conference yesterday. 

On this occasion, Sri Mulyani ensured that the current government strives to discuss and communicate the State Budget planning with the government-elect.  

Based on a temporary agreement between the government and the Working Committee A of the DPR Budget Agency on the macro-fiscal posture for 2025, economic growth is targeted at around 5.1-5.5 percent in 2025, with an inflation target of 1.5-3.5 percent, rupiah exchange rate of Rp15,300-15,900 per US dollar, 10-year SBN (Government Securities) interest rate of 6.9-7.2 percent, oil price at US$75-85 per barrel, oil lifting 580-605 thousand barrels per day, and natural gas lifting 1,003-1,047 million barrels per day.

The government also agreed that in 2025, the poverty rate would be reduced to 7-8 percent, the extreme poverty rate 0 percent, the Gini ratio 0.379-0.382, the Open Unemployment Rate (TPT) to 4.5-5 percent, the human capital index 0.56, and the Farmers Exchange Rate (NTP) 115-120, and Fisherman's Exchange Rate (NTN) 105-106.

DANIEL A. FAJRI | ILONA ESTHERINA

Editor’s Choice: Jokowi Pleased with Indonesia's Competitiveness Ranking Surpassing Japan, Malaysia

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