In response to the ailing global economy, Indonesian President Joko Widodo has unveiled a new economic policy package that aims to boost economic growth of Indonesia amid a highly uncertain global context. On Wednesday (09/09), Joko Widodo (often called Jokowi) provided some details about the first phase of this new stimulus package during a speech at the State Palace in Jakarta.
In coordination with the central bank (Bank Indonesia) and the Financial Services Authority (OJK), the central government will implement this stimulus package per September 2015 with the aim to create a conducive macroeconomic environment (particularly by revitalizing the real sector) hence boosting the country’s economic growth that has slowed to the six-year low of 4.67 percent (year-on-year) in the second quarter of 2015.
The first phase of this package encompasses three policies. The first one is to boost Indonesia’s industrial competitiveness through deregulation, curtailing red tape (bureaucracy), and by enhancing law enforcement as well as business certainty. President Widodo said there are currently 89 regulations that have been restructured from a total of 154 regulations that were under investigation (on grounds of inefficiency, which particularly involves the presence of overlapping or duplicated regulations) in order to strengthen coherency and consistency, while slashing regulations that were blocking further development of the nation’s industrial sector.
The government has already prepared 17 draft government regulations, 11 draft presidential regulations, 2 draft presidential instructions, 63 draft ministerial regulations, and 5 other regulations.