Appreciation of a Decade of President Jokowi’s Leadership and Success in the Economic Sector
By: Samuel Rachmadi
During the ten years of President Joko Widodo’s (Jokowi) leadership, Indonesia has experienced significant changes in the economic sector. This is inseparable from the various development policies that have been taken, which not only focus on the Java region, but also expand development throughout Indonesia. In the 2024 National Development Planning Deliberation (Musrenbang) forum, which is the last Musrenbang during Jokowi’s administration, these various achievements were comprehensively presented by the Minister of National Development Planning/Head of Bappenas, Suharso Monoarfa.
Suharso said that during Jokowi’s two terms in office, Indonesia’s economic growth remained stable, at around 5%. “The poverty rate has been suppressed to 9.36% as of March last year,” he said. This shows how Jokowi’s economic policies have had a positive impact in reducing poverty and improving people’s welfare.
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Another important achievement is the increase in job creation. During Jokowi’s leadership, employment has almost tripled, from 187 million in 2014 to 4.55 million in 2023. This shows that the economic policies taken by the government have succeeded in creating more job opportunities for the community. In addition, Suharso also highlighted the decline in the Gini ratio from 0.406 in 2014 to 0.38 in March 2023, which reflects improvements in economic equality in Indonesia.
Not only that, the farmer’s exchange rate also increased, from 102 in 2014 to 112.46 in 2023. The Human Development Index (HDI) also increased significantly, from 68.9 in 2014 to 74.39 in 2023. Suharso said that this reflects the progress achieved in improving the quality of life of the Indonesian people during Jokowi’s administration.
One of the achievements that deserves appreciation is Indonesia’s status as an upper-middle-income country in 2019. Indonesia’s nominal Gross Domestic Product (GDP) has almost doubled, from US$ 0.76 trillion in 2014 to US$ 1.74 trillion in 2023. In addition, Indonesia’s contribution to the world economy has also increased, from 2.4% in 2014 to 2.5% in 2023.
Meanwhile, data from the Central Statistics Agency (BPS) shows that Indonesia’s economic structure has undergone a significant shift during Jokowi’s leadership. In 2014, Java and Sumatra dominated the contribution to national GDP. However, in the first quarter of 2024, the central and eastern regions of Indonesia showed a significant increase in contribution. For example, Sulawesi’s contribution increased to 6.89%, while Maluku and Papua rose to 2.62%.
This shift is inseparable from the massive infrastructure development during the Jokowi administration. Infrastructure development that has so far focused on the Java region has now expanded to areas outside Java. In the last ten years, large-scale infrastructure projects, such as toll roads, ports, and airports, have been built in various regions. This is part of the National Strategic Project (PSN), which involves 204 projects and 13 programs in various sectors, including transportation, energy, and sanitation.
According to Minister of Transportation Budi Karya Sumadi, the development of transportation infrastructure that has been carried out over the past ten years aims to ensure connectivity between regions throughout Indonesia, even to remote mountainous areas. This is the foundation for creating new economic growth in various previously isolated regions while realizing the ideals of Indonesia – Centris.
To realize these ideals, growth must grow evenly. In addition, there needs to be a more targeted synergy between infrastructure development, investment, and increasing human resource capacity. The government and stakeholders must continue to work together to ensure that every infrastructure development or investment project not only improves the regional economy, but also directly improves the welfare of the local community.
On the other hand, although infrastructure development has accelerated, challenges in economic development outside Java still exist. According to Mohammad Faisal, Executive Director of the Center of Reform on Economics (CORE), massive infrastructure development is an extraordinary achievement. Fasial acknowledged that the downstreaming program carried out over the past five years is a good initial step in adding added value to Indonesian commodities, especially in the mining sector.
Overall, the economic achievements during President Jokowi’s administration are worthy of appreciation. The policies taken during his two terms of leadership have not only succeeded in maintaining stable economic growth, but have also succeeded in creating significant changes in the distribution of development throughout Indonesia.
With massive infrastructure development, the creation of new jobs, and the decline in poverty rates, Indonesia has shown that the economic policies taken during the Jokowi era are able to bring positive changes to the nation. With these successes, the Indonesian people can now feel the positive impact of the economic policies implemented by Jokowi during his two terms.
Although challenges remain, especially in terms of economic equality and broader industrialization, Jokowi’s achievements in the economic sector have provided a strong foundation for the nation’s future progress. These achievements are expected to be the foundation for the next government to continue the agenda of inclusive and sustainable development.
*) Economic Observer, Economic Research Institute, Pasundan University
