By: Ayu Safira Lestari
President Joko Widodo’s leadership since 2014 has brought significant changes to the Indonesian economy. The seventh President of the Republic of Indonesia has consistently directed the country towards a more sustainable economic transformation.
With the determination to advance the national economy, President Jokowi encourages increased investment that not only has a short-term impact, but also builds a strong economic foundation for the future. This is in line with his grand vision to make Indonesia one of the world’s leading economic powers.
President Jokowi’s strategic steps in facing global challenges are proven by optimizing the use of the State Budget (APBN). By allocating the APBN to productive sectors and infrastructure development, President Jokowi has created space for domestic and foreign investment to continue to grow.
The economic transformation he led aims to encourage Indonesia to compete globally and strengthen the foundation of long-term economic growth. President Jokowi firmly emphasized that the role of the APBN must focus on accelerating Indonesia’s progress, which includes not only physical development but also strengthening investment attractiveness in strategic sectors.
Presidential Special Staff for Economic Affairs, Arif Budimanta, said that the government continues to strive to maintain growth momentum by continuing structural reforms. One of the main policies taken is to reduce dependence on household consumption and begin shifting the focus of the economy to more productive sectors such as investment and exports.
This reform is carried out to strengthen Indonesia’s competitiveness amidst increasingly tight global competition, as well as to strengthen the domestic economy. The government is committed to continuing to maintain economic stability while ensuring that investment growth can be relied on as a main pillar in long-term economic development.
Furthermore, President Jokowi emphasized the importance of effective APBN management to drive Indonesia’s economic growth. By focusing on strengthening infrastructure, the government has succeeded in improving the investment climate, making Indonesia a prime destination for investors in Southeast Asia.
Better infrastructure allows for lower logistics and production costs, creating benefits for investors in manufacturing, technology and other industries. This policy also ensures that incoming investment not only provides direct economic benefits but also creates new jobs and improves the welfare of society as a whole.
The government is not only focusing on traditional sectors, but also encouraging investment in the green energy sector. For example, in the last world-class forum, the International Sustainability Forum (ISF), the Indonesian Minister of Foreign Affairs, Retno Marsudi, explained that under the leadership of the Indonesian President who took office in 2014, Indonesia has increasingly emphasized the importance of investment in clean energy.
Indonesian President Joko Widodo has demonstrated his commitment to a green economy as a driver of sustainable growth. Indonesia’s vast potential in renewable energy, such as solar and hydro, has attracted global investors seeking to engage in clean energy projects in Indonesia.
These steps are not only aimed at maintaining national economic growth, but also anticipating global climate change. Growing green investment will ensure that the Indonesian economy is not only financially profitable, but also environmentally friendly and sustainable.
Retno Marsudi emphasized that collaboration with various countries and multinational companies in the renewable energy sector places Indonesia at the forefront of global change towards a green economy.
Thus, investment into this sector not only helps meet national energy needs, but also strengthens Indonesia’s position as a major player in the global clean energy transition.
The efforts of the seventh President of the Republic of Indonesia in creating a conducive investment ecosystem have produced several important achievements. Increased investment in the infrastructure, clean energy, and manufacturing sectors shows that the economic reforms carried out are not only short-term.
All of these are strategic steps that ensure that the Indonesian economy can grow sustainably. Structural reforms carried out by the government strengthen the resilience of the Indonesian economy in facing global challenges and world economic turmoil. This resilience is also an important capital for Indonesia to anticipate the negative impacts of global economic uncertainty.
The government has also committed to continuously improving policies that can encourage ease of doing business in Indonesia. Regulatory reforms that have been carried out through the Omnibus Law program are one of the policies that play an important role in attracting foreign investors.
By reducing bureaucratic barriers and speeding up the licensing process, it is now easier for investors to conduct their business in Indonesia. President Jokowi understands that investor trust is crucial to creating sustainable economic growth, therefore he continues to emphasize the importance of transparency and accountability in investment management.
With its success in creating an attractive investment environment, Indonesia is now one of the economic powers to be reckoned with in the region and the world. The President of the Republic of Indonesia, who was born in Surakarta, has shown his commitment to building an economic foundation that is not only strong but also sustainable.
Through increased investment, structural transformation, and a focus on clean energy, Indonesia is ready to face the future with greater resilience and competitiveness. The investment leap that has occurred not only reflects the success of government policies, but also marks a more competitive and sustainable future for the Indonesian economy.
*) Economic Policy Consultant – People’s Economic Forum
