Indonesian President Foresees Surge in Capital and Investment After Peaceful General Elections
Jakarta, The Gulf Observer: Indonesian President Joko Widodo expressed optimism on Tuesday regarding a prospective increase in capital and investment flowing into Indonesia following the peaceful conduct of the February 14 general elections. Speaking at the annual meeting of the financial services industry in Jakarta, President Widodo, popularly known as Jokowi, acknowledged that many businesspeople had been awaiting the election results and were relieved by the smooth electoral process.
“They were somewhat concerned about the heated politics ahead of the elections. However, the elections went smoothly, and people were happy to vote,” remarked President Widodo, highlighting the significance of political stability in fostering inclusive and sustainable economic growth.
Addressing the resilience of Indonesia’s financial industry, President Widodo reported that banking capital levels had reached 27.69 percent, and banking credit had grown by 10.38 percent year on year, surpassing pre-pandemic levels. This achievement occurred amidst the global geopolitical challenges, including the ongoing conflicts in Gaza and Ukraine.
President Widodo also emphasized Indonesia’s economic growth at 5.05 percent and controlled inflation at 2.57 percent. Notable economic indicators included foreign exchange reserves totaling US$145 billion, a trade balance surplus of US$36 billion, and a current account surplus of 0.16 percent.
“These figures inspire optimism about the Indonesian economy in 2024,” he remarked. However, President Widodo cautioned against complacency, urging caution and vigilance due to the dynamic nature of the global economy and ongoing technological disruptions.
In his address, President Widodo urged the Financial Services Authority (OJK) to focus on strengthening financial inclusion and literacy, which stood at 75 percent and 65 percent, respectively, in 2023. He emphasized the importance of supporting micro, small, and medium enterprises (MSMEs) by facilitating access to banking and insurance, noting that current MSME loan penetration remains at 19 percent.
“We must improve this access with suitable strategies to help them grow,” President Widodo added.
Acknowledging the refinement of the Indonesian Sustainable Finance Taxonomy launched by the OJK, President Widodo lauded the initiative for ensuring that green finance aligns with economic, environmental, and inclusive aspects, promoting a balanced and sustainable financial ecosystem.
