In Order To Save The Economy, Jokowi Emphasizes The Importance Of Strengthening The Demand To Increase Consumption Figures

President of the Republic of Indonesia, Joko Widodo. (Photo: Setkab)

JAKARTA - President Joko Widodo (Jokowi) has asked his staff to strengthen demand or demand in the country in order to increase household consumption growth in the fourth quarter of 2020. For this reason, according to him, hard work is needed from all levels of government to realize the expenditure budget to the maximum point in quarter IV 2020.

"It is our duty to strengthen demand so that consumption will be better," said President Jokowi during a cabinet meeting held at the State Palace, Jakarta, Monday, November 2.

The former governor of DKI Jakarta then explained that the rate of household consumption which covers more than half of Indonesia's Gross Domestic Product (GDP) is still minus 5.51 percent based on data from the Central Statistics Agency (BPS).

"This fourth quarter is the last quarter. I hope that the realization of our spending really must be at its maximum point," he said.

Jokowi reiterated that his staff should pursue efforts for economic recovery in the first quarter of 2021 from now on. This was done so that the benefits in the next year could be felt optimally in all sectors of the economy.

"Please convey it to the director general, directors, and all levels that you lead (ministries / institutions), the fourth quarter of 2020 can be maximized, but be careful in the first quarter of 2021 it must also be started from now," said President Jokowi.

The President reminded that if the budget implementation list (DIPA) has been completed, ministries and state institutions can immediately carry out the procurement by auction according to the provisions.

That way, said the President, the wheels of the economy can immediately move quickly since January, February and March 2021. There will be no more delays like the previous years due to the slow realization of the budget at the beginning of the year.

"So, back again, the first quarter of 2021 must be designed from now on, so that the activity will start in January (2021)," he said.

Furthermore, Jokowi also has problems with investment growth which is still minus 5 and even reaching minus 6 in the third quarter.

"I have warned the Head of BKPM and the Coordinating Minister for Marves that the third quarter which is minus below 5 should be pursued in the fourth quarter," he said.

That way, it is hoped that in the first quarter of 2021, it is hoped that investment in the country can be improved. Moreover, currently the United States has extended import duty relief for Indonesia or the Generalized System of Preference (GSP).

"We are the only country in Asia that has this facility and we hope that our exports will be able to go up and jump," said Jokowi.

"Hopefully this is also used as an opportunity to attract investment because there are such facilities, establishing a company factory industry in Indonesia will be more attractive," he concluded.