Indonesia has been an independent State for 70 years. Indonesian Vice President Jusuf Kalla blames imprecise policies behind the country’s adversity.
President Joko Widodo has instructed all ministries and government institutions to tighten their budget spending. On 22 June 2017, he has issued Presidential Instruction No.4/2017 on Efficiency Measures at Ministries/Government Institutions in the Implementation off the State Budget 2017.
Jokowi also used the forum to start a diplomacy on palm oil, particularly with European countries so they would stop their black campaign against Indonesian palm oil.
7-Eleven (Sevel) has gone bankrupt in Indonesia. The parent company, PT Modern Internasional (MDRN), has announced all 7-eleven stores will close as of 30 June 2017.
Joko Widodo is expanding national airports in number and capacity. The Indonesian government intends to build 45 new airports over the next decade.
Meanwhile, Executive Director of IGJ Rachmi Hertanti explained that the investment stability agreement would still give a chance to Freeport to protest against Indonesia to the International Court of Arbitration.
The Indonesian Independent Power Producers Association (APLSI) revealed three challenges faced by the government in developing the electricity sector: Regulatory uncertainty, lack of coordination between ministries and management issues in the 35,000 MW Program, according to the association’s survey held in cooperation with PwC Indonesia, recently.
The House of Representatives Commission VII scrutinized PT PLN, following the finding from the Supreme Audit Agency (BPK) that the state-run electricity company has not collected bills from contractors that executed the 10,000 MW Program launched by former president Susilo Bambang Yudhoyono.
PT Garuda Indonesia, Tbk must make measures to improve its performance as the state-run airliner has been posting huge losses and stakeholders are worried.
To ensure that the electricity tariff subsidy is provided for underprivileged people, the government implements the Accurate Electricity Tariff Subsidy Policy (SLTS) since January 1, 2017.
The increasing investment grade of Indonesia according to the Standard & Poor’s is considered bringing a positive impact on the economy of Indonesia. Finance Minister Sri Mulyani Indrawati claims that more foreign investors are looking for opportunities in Indonesia.
Minister of Finance Sri Mulyani has set Indonesia’s economic growth target in the Draft State Budget (RAPBN) at 5.4-6.1 percent.