Defeating Prabowo Subianto in Indonesia presidential election, more hardships and tasks are placed on the shoulder of Jokowi Widodo. He is expected to boost the economy growth rate that was declining for the past few years. Unlike its neighbouring countries like China or Thailand, Indonesia does not produce enough goods to export. Their manufacturing industry share remains as an outlier compared to others.

What should be done?

According to Gabriel Domínguez blog, Indonesia should take part “first hand” on power generation, shipping and ports in order to create a more competitive environment. Hence, catalyzing the process of economic growth.

I agree with his opinions because by participating more in global supply chains, soon Indonesia will realize what are the specialities and comparative advantage which is essential in generating employment and importing newer technology. Jokowi needs to embrace democracy by allowing more international trade, investment, people and ideas.

However, it is stated that Indonesia has been attracting foreign investor due to cheap labor, land and capital. The problem now is how to maintain the interest of foreign investors to keep investing in Indonesia.

Personally for an Indonesian citizen like me, I think it would be best if Jokowi can open up more company’s ownership to foreigners. But, not in excess so it can balance out ownership between international and domestic company. Solving the infrastructure within the country will attract more foreign investors. If public transports are working perfectly, it would be more convenient for companies to transport goods from one place to another. Eliminating all the documents hassle that needed to process when some goods are imported or exported from or into Indonesia will benefit both traders. This will encourage investors to do business with and in Indonesia which surely will boost the economic growth.