Ada Pertanyaan? Hubungi Kami 
2026 Hak Cipta Milik Hukumonline.com
Produk Pilihan
Ada Pertanyaan? Hubungi Kami Jasmine Abdurrachim, Fitri Novia Heriani
Indonesia emerged as South East Asia's worst-performing currency during the second quarter of this year, as the rupiah plummeted in value by some 10 percent. Meanwhile, economic growth dropped to an annual rate of just 4.67 percent, its lowest point in six years.However, Rosan P. Roeslani, Chief Deputy of the Chamber of Commerce and Industry in the field of banking and finance, sees these figures as offering the country an opportunity to speed up economic growth through a process of reindustrialization and industrial development based upon the available resources.
“The ASEAN Economic Community (“AEC”) is right in front of us and investors are prepared to come here, just so long as there is decent infrastructure and fixed regulations. The previous administration strengthened the platform, now it is time for take-off,” stated Mr. Roeslani at a discussion held at Indonesia’s Current & 2016 Economic Opportunity and Challenges conference, which was held in Jakarta on 19 August, 2015.
Mr. Roeslani also asserted that such a reindustrialization program was in line with President Joko Widodo’s economic policy. The President is aiming to utilize a state budget of IDR 1,984 trillion in 2015 and a projected budget of almost IDR 2,200 trillion in 2016 for productive projects such as the country's aging infrastructure, as well as the Social Guarantee Program, which is aiming to sustain purchasing power among the population via the Family Hope Program (“PKH”) and Family Welfare Card (“KKS”) program. In addition to these projects, the President is also considering the creation of a new regulation aimed at accelerating budget expenditure.
Bank Indonesia (BI) Governor, Agus Martowardojo, who also was also in attendance at the conference, stated that Indonesia should focus its efforts on industrialization and down-streaming, due to the current drop in commodity prices. The drop means that the government cannot rely on raw commodities such as nickel, copper and bauxite in order to support its social-welfare programs.
Mr. Martowardojo further elaborated that, according to the Statistics Indonesia (BPS), household consumers were still the largest contributors to Indonesia's Gross Domestic Product, with domestic consumption amounting to IDR 10,542.7 trillion or 56.07% of GDP in 2014. A re-invigoration of the country's industrial sector is, according to Martowardayo, likely to increase Gross Fixed Capital Formation (PMTB) or investment aimed towards GDP, which in 2014 amounted to 32.57%.
In contrast to the opinions of his colleagues however, Muliaman Hadad, Chairman of OJK's Board of Commissioners, believes that more focus is required regarding the need to encourage foreign investors to sink money into the country, as well as the need to develop a more solid domestic investor base. One example that Hadad offered during the discussion related to a company in Solo that offers bonuses to employees in the form of stocks that could become a solid foundation for local investors.
Showing little concern for the current economic-growth figures, Mr. Hadad claimed that, based on past experience, the situation in the second semester would improve, as higher budget expenditures normally occured during the second semester.
“The current issue revolves around how to revive expenditure in order to provide significant impact upon which banks can improve their positions,” concluded Mr. Hadad.
(sp)
Jasmine Abdurrachim, Fitri Novia Heriani
Indonesia emerged as South East Asia's worst-performing currency during the second quarter of this year, as the rupiah plummeted in value by some 10 percent. Meanwhile, economic growth dropped to an annual rate of just 4.67 percent, its lowest point in six years.However, Rosan P. Roeslani, Chief Deputy of the Chamber of Commerce and Industry in the field of banking and finance, sees these figures as offering the country an opportunity to speed up economic growth through a process of reindustrialization and industrial development based upon the available resources.
“The ASEAN Economic Community (“AEC”) is right in front of us and investors are prepared to come here, just so long as there is decent infrastructure and fixed regulations. The previous administration strengthened the platform, now it is time for take-off,” stated Mr. Roeslani at a discussion held at Indonesia’s Current & 2016 Economic Opportunity and Challenges conference, which was held in Jakarta on 19 August, 2015.
Mr. Roeslani also asserted that such a reindustrialization program was in line with President Joko Widodo’s economic policy. The President is aiming to utilize a state budget of IDR 1,984 trillion in 2015 and a projected budget of almost IDR 2,200 trillion in 2016 for productive projects such as the country's aging infrastructure, as well as the Social Guarantee Program, which is aiming to sustain purchasing power among the population via the Family Hope Program (“PKH”) and Family Welfare Card (“KKS”) program. In addition to these projects, the President is also considering the creation of a new regulation aimed at accelerating budget expenditure.
Bank Indonesia (BI) Governor, Agus Martowardojo, who also was also in attendance at the conference, stated that Indonesia should focus its efforts on industrialization and down-streaming, due to the current drop in commodity prices. The drop means that the government cannot rely on raw commodities such as nickel, copper and bauxite in order to support its social-welfare programs.
Mr. Martowardojo further elaborated that, according to the Statistics Indonesia (BPS), household consumers were still the largest contributors to Indonesia's Gross Domestic Product, with domestic consumption amounting to IDR 10,542.7 trillion or 56.07% of GDP in 2014. A re-invigoration of the country's industrial sector is, according to Martowardayo, likely to increase Gross Fixed Capital Formation (PMTB) or investment aimed towards GDP, which in 2014 amounted to 32.57%.
In contrast to the opinions of his colleagues however, Muliaman Hadad, Chairman of OJK's Board of Commissioners, believes that more focus is required regarding the need to encourage foreign investors to sink money into the country, as well as the need to develop a more solid domestic investor base. One example that Hadad offered during the discussion related to a company in Solo that offers bonuses to employees in the form of stocks that could become a solid foundation for local investors.
Showing little concern for the current economic-growth figures, Mr. Hadad claimed that, based on past experience, the situation in the second semester would improve, as higher budget expenditures normally occured during the second semester.
“The current issue revolves around how to revive expenditure in order to provide significant impact upon which banks can improve their positions,” concluded Mr. Hadad.
(sp)