President Joko Widodo said that in the future, it is not big countries that will beat small countries or rich countries that will beat poor countries, but fast countries that will beat slow countries. To be able to compete with other countries, at least three main foundations are needed, namely infrastructure, downstream and industrialization, and digitalization.
This was conveyed by President Joko Widodo in his remarks when he officially opened the 2022 National Gathering (Silatnas) of Retired Indonesian Army (PPAD) held at Sentul International Convention Center (SICC), Bogor Regency, Friday, August 5, 2022.
“First, infrastructure. It may not be felt for five or ten years, we can’t feel it instantly now. But once we compete with other countries, if our infrastructure is good, it will be seen whether we can compete or not,” the president said.
“Over the past seven years, 2,042 km of toll roads have been added, 5,500 km of toll-free roads, 16 new airports, 18 new ports, 38 new dams, 1.1 million hectares of irrigation. It is our foundation to compete later with other countries. Maybe we can’t feel it instantly now, and later the effect will be felt in the state budget,” he continued.
The second foundation is downstream and industrialization. President Jokowi underlined the export of raw materials which has been taking place for a long time, for example nickel. According to him, the export value of nickel in the form of raw materials in 2014 only reached $1 billion or Rs 15 trillion and jumped several times after the export stopped.
“Once we stop, in 2017 we will stop (the export of raw materials) nickel, the exports in 2021 will reach more than IDR 300 trillion. From Rp. 15 trillion it rose to Rp. 300 trillion. It’s just a product,” he added.
According to President Jokowi, by proceeding with downstream and industrialization, the government will reap many benefits. First, tax revenue will increase, second, it will create a lot of job opportunities. For this reason, the government plans to stop exports in the form of raw materials for other commodities.
“After this nickel, even if it is not over (the trial) at the WTO, we will still stop this year, maybe tin or bauxite, stop. Worked by companies companies, in collaboration with the private sector. If the public companies and the private sector are not ready for the technology, it is not a problem to take a partner. Foreign partners for the transfer of technology are fine” , he explained.
The third foundation is digitalization, especially for micro, small and medium-sized enterprises (MSMEs). According to the President, there are 65.4 million MSMEs in Indonesia, all of which contribute 61% of the Indonesian economy.
“Don’t forget those little ones. Therefore, we continue to encourage them to enter the digital ecosystem. This will later become the solid foundation of the Indonesian economy, (i.e.) micro, small and medium enterprises, not large ones,” he said.
If downstream and industrialization are carried out consistently, the head of state believes, Indonesia’s economic GDP/GDP, which currently ranks 15th in the world, could rise to seventh in the world in 2030, and the fourth in 2045.
“If our economic growth is good, our GDP is good, later in 2030 our estimate will be three times what it is today, going from the current $1.2-1.3 trillion to more than $3 trillion. Finally what? Our state budget has gotten bigger and bigger,” he said.
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