Focus on Tasks, Collaboration

KOMPAS/WAWAN H PRABOWO

Golkar Party chairman Airlangga Hartarto leaves the Presidential Palace complex in Jakarta after meeting President Joko “Jokowi” Widodo on Monday (21/10/2019). Airlangga, the industry minister in the Jokowi-Jusuf Kalla Cabinet, said he had been reappointed by the President as the coordinating minister for the economy.

After being sworn-in, the ministers of the Indonesia Onward Cabinet began to carry out their duties. Collaboration is key in facing uncertainty in the global economy.

JAKARTA, KOMPAS — The Indonesia Onward Cabinet was inaugurated amid uncertain global economic conditions. The economic team faces difficult challenges.

Especially on Wednesday (23/10/2019), President Joko Widodo said the Cabinet would focus on developing human resources, creating jobs and empowering micro, small and medium businesses.

Coordinating Economic Minister Airlangga Hartarto said the first task was to create a program to slash the current account deficit, among others by substituting imports. The program includes restructuring petrochemical company PT Trans-Pacific Petrochemical Indotama (PT TPPI), realizing 30 percent biodiesel mix and encouraging 100 percent biodiesel mix. "The effort to cut current account deficit is focused on reducing the pressure from the oil and gas sector," Airlangga said after the handing over ceremony at the Office of the Coordinating Economic Minister in Jakarta on Wednesday afternoon.

There has been a quarterly current account deficit since the fourth quarter of 2011. On an annual basis, there has been a current account deficit since 2012. In the second quarter of 2019, the current account deficit reached US$8.4 billion or 3.04 percent of gross domestic product (GDP).

Airlangga also mentioned a plan to evaluate the 16 economic policy packages and to submit an omnibus law to the House of Representatives (DPR) related to job creation and small and medium business empowerment.

KOMPAS/HERU SRI KUMORO

Creative industry businessman Wishnutama walks in the Presidential Palace complex in Jakarta on Monday (21/10/2019). He was appointed by President Joko “Jokowi” Widodo as the tourism and creative economy minister.

After relinquishing his post as coordinating economic minister, Darmin Nasution advised Airlangga to find competent expert staff in the economic field. The scope of the coordinating economic minister is very broad, and not only concerns trade and industry. Airlangga is also asked to regularly monitor food price fluctuations. Airlangga\'s economic team is expected to maintain inflation stability amid pressures and decline in global economic growth. "Don\'t be confused if there are questions about inflation. Otherwise, it will be a problem," Darmin said.

Tourism and Creative Economy Minister Wishnutama Kusubandio said the tourist industry and creative economy needed to be harmonized. To create more tourist visits, creativity becomes the foundation so that there will be creation of more products that have attractiveness.

Wishnutama added that basic infrastructure development and efforts to promote tourist destinations were needed. However, the most important thing is that there are attractive products to attract tourists to come, such as through the annual tourism calendar of events program.

"I think the number of activities listed on the tourism calendar of events does not have to be many. A small number is OK as long as the activity has a big attraction. Its management has to be more focused," he said.

Wishnutama emphasized that the attractiveness of Indonesian tourism lied not only in natural beauty but also in cultural richness. The key is to use creativity so that every tourist who comes has a memorable experience.

Outgoing tourism minister Arief Yahya said President Joko Wiododo had set the tourist industry as the "DNA" of Indonesia or as a leading industrial sector. "The potential of Indonesia’s tourism and creative economy is quite large," he said.

Collaboration

Maritime Affairs and Fisheries Minister Edhy Prabowo said several programs that would be carried out, among others, improving communication with fishermen and fisheries business practitioners and the strengthening of aquaculture.

"Our task is to continue defending the fishermen and business players in this sector. We must work together. There is no time to debate problems of the past. We will look forward," he said at the handover ceremony.

Collaboration is also expected to help SOEs become global players.

At the State-Owned Enterprises Ministry on Wednesday afternoon, Erick Thohir held a coordination meeting with the board of directors of a number of state companies. He spoke of the importance of collaboration between state companies, regional and private-owned businesses and the private sector in building a healthy ecosystem. Collaboration is also expected to help SOEs become global players.

In her speech, outgoing state-owned enterprises minister Rini Soemarno said Erick should maintain togetherness among the state companies.

Industry Minister Agus Gumiwang Kartasasmita said he had been assigned by President Joko Wiododo, among others, to immediately complete the 100 percent biodiesel mix program for every liter of diesel fuel. (KRN/MED/LKT/ERK/CAS)