Minister Bahlil Lauds Jokowi for Steering Indonesia Out of Crisis

TEMPO.CO, Jakarta - Investment Minister Bahlil Lahadalia praised President Joko "Jokowi" Widodo for successfully navigating Indonesia out of a multidimensional crisis. He emphasized the role of strong leadership in achieving economic stability.

“This is a battle of state leaders,” he said during a public lecture at the Institute of Domestic Government (IPDN) in Jatinangor, West Java, which was live-streamed on YouTube on Thursday, July 11, 2024.

Jokowi's success, according to Bahlil, is evident in Indonesia's first-quarter 2024 economic growth remaining above 5% and inflation below 3%. He contrasted this with countries such as Argentina and Turkey, which are currently experiencing significantly higher inflation rates of up to 80 percent and even more than 100 percent.

“Stable economic growth and inflation are a testament to strong leadership,” he remarked.

The Head of the Investment Coordinating Board (BKPM) also explained that the national economic growth in 2023 exceeded 5% with inflation below 3%, making it one of the top-performing economies globally that year alongside India and China. “The rest fell below 5 percent growth,” he said.

He claimed that investment was a key driver of this growth. While the Ministry of Investment attracts investment, regional leaders – graduates from IPDN –  play a crucial role in managing local investment environments.

Bahlil further outlined that Indonesia surpassed its 2023 investment target of Rp1,400 trillion, achieving a total of IDR 1,418.9 trillion. Foreign investment (PMA) contributed 52.4%, while domestic investment (PMDN) accounted for 47%. The distribution between Java and other regions was roughly even at 51.5%.

These investments generated significant job creation, amounting to 1,823,543 jobs between January and December 2023. He emphasized that Indonesia's manufacturing sector is the most attractive in Southeast Asia for foreign investors.

Beyond investment, Bahlil identified four key contributors to economic growth: consumption, investment, government spending, and exports-imports. He also noted that Singapore emerged as the top source of foreign investment from 2019 to 2023, followed by China and Japan. 

Singapore's investment in Indonesia grew steadily during this period, reaching US$15.4 billion in 2023. “They’ve been saying [that the top investor is] China,” Bahlil concluded.

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