Indonesia reveals measures for “economic jump forward”

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Joko Widodo_cornIndonesian President Joko Widodo on September 9 unveiled a series of stimulus measures to boost slowing growth in Southeast Asia’s largest economy and help the country’s plunging currency recover.

In a televised speech, Widodo announced a broad range of measures including the slashing of red tape to woo investors, moves to bolster the rupiah and programmes to help the poorer part of the population. He said the stimulus was aimed at providing an “economic jump forward”, and that two other parts of the package would be unveiled in the coming weeks.

Widodo came to power last year pledging to boost the G20 economy but his government has faced criticism for a series of policy flip-flops, sending mixed messages to investors and a failure to get key initiatives off the ground.

In a bid to cut through red tape, the president said that “adjustments” were being made to 89 regulations to simplify doing business and cut “irrelevant regulations which have hampered the competitiveness of national industry”.

Policies announced to help the poor included the provision of cheaper fuel to fishermen, more funding to villages and the strengthening of a programme to provide cheap rice.

Measures to help the rupiah include improving the management of foreign exchange flows.

Other steps unveiled in the package include helping exporters with financing and making it easier for frequent foreign visitors to Indonesia to open bank accounts.

Growth continued to slide in Indonesia this year, hitting a six-year low of 4.7 per cent in the second quarter, while the rupiah has fallen to a 17-year low in recent months. On September 10, the exchange rate for the rupiah to the US dollar was 14,208, up from 11,780 exactly one year ago. Like other emerging markets, Indonesia has been hit by external factors, such as expectations that the US will soon raise interest rates, as well as China’s devaluation of its currency.

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Indonesian President Joko Widodo on September 9 unveiled a series of stimulus measures to boost slowing growth in Southeast Asia's largest economy and help the country's plunging currency recover. In a televised speech, Widodo announced a broad range of measures including the slashing of red tape to woo investors, moves to bolster the rupiah and programmes to help the poorer part of the population. He said the stimulus was aimed at providing an "economic jump forward", and that two other parts of the package would be unveiled in the coming weeks. Widodo came to power last year pledging to boost...

Reading Time: 2 minutes

Joko Widodo_cornIndonesian President Joko Widodo on September 9 unveiled a series of stimulus measures to boost slowing growth in Southeast Asia’s largest economy and help the country’s plunging currency recover.

In a televised speech, Widodo announced a broad range of measures including the slashing of red tape to woo investors, moves to bolster the rupiah and programmes to help the poorer part of the population. He said the stimulus was aimed at providing an “economic jump forward”, and that two other parts of the package would be unveiled in the coming weeks.

Widodo came to power last year pledging to boost the G20 economy but his government has faced criticism for a series of policy flip-flops, sending mixed messages to investors and a failure to get key initiatives off the ground.

In a bid to cut through red tape, the president said that “adjustments” were being made to 89 regulations to simplify doing business and cut “irrelevant regulations which have hampered the competitiveness of national industry”.

Policies announced to help the poor included the provision of cheaper fuel to fishermen, more funding to villages and the strengthening of a programme to provide cheap rice.

Measures to help the rupiah include improving the management of foreign exchange flows.

Other steps unveiled in the package include helping exporters with financing and making it easier for frequent foreign visitors to Indonesia to open bank accounts.

Growth continued to slide in Indonesia this year, hitting a six-year low of 4.7 per cent in the second quarter, while the rupiah has fallen to a 17-year low in recent months. On September 10, the exchange rate for the rupiah to the US dollar was 14,208, up from 11,780 exactly one year ago. Like other emerging markets, Indonesia has been hit by external factors, such as expectations that the US will soon raise interest rates, as well as China’s devaluation of its currency.

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