Jokowi Hopes That Capital and Investment Flows will Increase After the Election

President Joko Widodo delivered his remarks at the 2024 Financial Services Industry Annual Meeting in Jakarta, Tuesday (20/2/2024). (ANTARA/Yashinta Difa)

JAKARTA - President Joko Widodo (Jokowi) hopes that the flow of capital and investment entering Indonesia will increase after the 2024 General Election.

"I know that many business people were still waiting for the election yesterday - wait and see, because they were a bit worried about the heated politics leading up to the election. But now, thank God, the election went smoothly, people flocked to the polling stations with joy," said President Jokowi in The 2024 Financial Services Industry Annual Meeting in Jakarta was reported by ANTARA, Tuesday, February 20.

According to the President, domestic political stability is very important to generate a stronger financial industry to support inclusive and sustainable economic growth.

In the midst of unfavorable global geopolitical conditions with the ongoing war in Gaza and Ukraine, the President explained the resilience of the Indonesian financial industry with banking capital levels reaching 27.69 percent and banking credit growing 10.38 percent year on year, or above pre-level. pandemic.

According to President Jokowi, Indonesia's economy is growing very well, namely 5.05 percent and inflation is under control at 2.57 percent.

Meanwhile, Indonesia's foreign exchange reserves amounted to 145 billion US dollars (around IDR 2,271.2 trillion), the trade balance had a surplus of 36 billion US dollars (equivalent to IDR 570 trillion), and the current account deficit was a surplus of 0.16 percent.

"I think numbers like that should (make) us optimistic about the Indonesian economy in 2024. But we still have to be careful and alert because the global economy is changing very quickly and massive technological disruption continues to occur," said Jokowi.

To support an inclusive and sustainable economy, the President encouraged the Financial Services Authority (OJK) to continue to strengthen financial inclusion and literacy, which will still be at 75 percent and 65 percent respectively in 2023.

"And what is no less important is our support for MSMEs through banking and insurance. Bank credit for MSMEs is currently still at 19 percent. "This needs a breakthrough, it needs a strategy so that there is an increase in banking credit for MSME capital so that we can see our MSMEs grow well," he said.

President Jokowi also appreciated the refinement of the Indonesian Sustainable Finance Taxonomy launched by OJK so that green finance initiatives can balance economic, environmental and inclusive aspects.