Economy

Early moves made by the government of the new president, Joko Widodo, appear to be helping the economy considerably, especially on the FDI side. With the application of the right policies, the country could return to growth above 6%, and perhaps eventually reach the 7% target set by the new president. Indonesia is working off a sound economic base. The decline in GDP growth has been stopped, and the country is starting to make the transition from a consumption- and export-dependent economy to one that is more driven by investment, manufacturing and perhaps even the export of finished products. Risks remain, particularly in terms of overly aggressive policies on the one hand and implementation issues and protectionism on the other. If the right balance can be struck and the government’s plans can be translated into tangible projects, many see the possibility for growth to return to levels that are higher than regional and global averages.

This chapter contains interviews with Bambang Brodjonegoro, Minister of Finance; and Basuki “Ahok” Purnama, Governor of Jakarta.