President Jokowi: Indonesia Is About to Become a New Economic Superpower

Along with China and India, President Joko "Jokowi" Widodo has voiced optimism that Indonesia will emerge as one of the new economic superpowers.

With the transition from the West to Asia, we have entered "the Asian century." Another change in the economy's growth pattern is Asia. In his opening remarks at the BNI Investor Daily Summit 2024, held on Tuesday, October 8, at the Jakarta Convention Center (JCC), Senayan, Jakarta, President Jokowi stated that three new economic powers—India, China, and Indonesia—are expected to emerge in Asia.

But he also cautioned that Indonesia would have to overcome many obstacles and fulfill a number of standards in order to accomplish that aim.

Thus, the President continued, maintaining optimism is essential while dealing with a variety of global issues, including as the effects of climate change, economic downturns, and heightened geopolitical tensions.

He said that all of these have an impact on the world economy, which includes Indonesia's economy.

As per his statement, Indonesia's economy is growing at a rate over 5 percent, which is greater than the global growth rate of 2.7 to 2.8 percent.

Along with saying that the nation has enough capital to become developed, President Jokowi also mentioned that the country's economic growth stayed steady at 5.08 percent in the second quarter of 2024 and that inflation is under control at about 2-3 percent.

The Consumer Confidence Index, meantime, is currently at 124.4, while the expenditure index increased from 145.8 in Q3 2023 to 234.8 in Q3 2024.

It indicates that there has been a notable YoY growth. Our GDP per capita is now [US$]5,060, and we expect to surpass [US$]7,000 in the next five years, [US$]9,000 in the next ten, and so on. We have to keep doing this," he stated.

The significance of digitalization and downstreaming in augmenting Indonesia's competitiveness was again emphasized by the President.

“It is essential to downstream. Added value is vital. However, digitalization—the second factor—is also crucial. Digitalization is the second, and downstreaming is the first," he stated.

He says that in order to support digital infrastructure, data centers, digital payment methods, and digital analytics must be developed.

Industrial downstreaming is essential for raising added value in addition to digitalization.

According to the President, significant advancements have been made since downstreaming laws were implemented for natural resources like nickel and copper.

He went on, "Today, products like cathodes, stainless steel, nickel ore, pipes, pans, spoons, and battery cells are produced domestically, offering more added value than raw material exports."

“Our industries, as a result implementing downstreaming policies, have produced these items. The President stated, "It is clear that there has been a significant increase from US$1.4–2 billion prior to the nickel embargo to US$34.8 billion.

He asserted that in order to guarantee additional value, other natural resources including plantations, fisheries, and agriculture must also be encouraged in addition to mining products.

The President extended an invitation to everybody to pledge to construct Indonesia according to a well-thought-out and tactical plan.

It takes courage to follow our own path. Refrain from adhering to worldwide trends, which might occasionally thrust us into competitive situations where we lack our own core abilities and strengths, the speaker advised.

Additionally, he reiterated that by focusing our efforts on these issues and employing tactical plans and methods, Indonesia may become an economic superpower and usher in "the Asian Century."

 By Deputy Cabinet Secretary's Office of Assistant for State Documents & Translation

Source setkab.go.id