Three Economic Challenges for Jokowi-Kalla

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  • TEMPO.CO, Jakarta - The Development Planning Board (Bappenas) chief Armida Alisjahbana has warned president and vice president-elect Joko Widodo and Jusuf Kalla of economic challenges they would face.

    "The challenges are tougher, especially on fiscal and macro economy," she said yesterday.

    The first challenge is narrow fiscal space left by President Susilo Bambang Yudhyono. Armida advised Jokowi-Kalla to act fast in covering up budget deficit so that the government can keep running smoothly.

    The second challenge is the small tax achievement and swelling subsidy budget. The global oil price is currently in its lowest level, but dollar keeps rising. Therefore, the plan to increase subsidized fuel price must be calculated thoroughly.

    The third challenge is low budget absorption, which is at around 65 percent. However, Armida said cash-flow condition is still safe and hoped Jokowi-Kalla will maintain it. "That must be the focus," said Armida.