Jokowi Reveals Several Strategies to Realize Golden Indonesia 2045

Jakarta – The Indonesian President Joko Widodo (Jokowi) said that the government has several strategy to take advantage of opportunities to achieve a Golden Indonesia 2045. This is because the demographic bonus and international trust are great opportunities for Indonesia to achieve a Golden Indonesia in 2045. 

"The strategy is already there. We just have to choose whether to focus our energy to move forward or waste energy on unproductive things," President Jokowi said at the Annual Session of the MPR RI and the Joint Session of the DPR RI and DPD RI in the context of the 78^th Anniversary of the Proclamation of Independence of the Republic of Indonesia, Jakarta, on Wednesday. 

The first strategy carried out by the government is preparing Indonesia's human resources. The President revealed that by 2022, the Government has succeeded in reducing the stunting rate to 21.6 percent from 37 percent in 2014, increasing the Human Development Index to 72.9, and increasing the Gender Empowerment Index to 76.5.

"(The Government) prepared a total social protection budget from 2015 to 2023 of Rp3,212 trillion, including the Healthy Indonesia Card, Smart Indonesia Card (KIP), College KIP, PKH (Family Hope Program), Basic Food Card, and protection for the elderly, people with disabilities, and other vulnerable groups, as well as reskilling and upskilling the workforce through the Job Training Center and the Pre-Employment Card Program," the Head of State explained. 

Second, the government also continues to intensify industrial downstreaming policies that can not only increase job creation that leads to national productivity, but also provide maximum added value.

"This is where the role of the green economy sector and downstreaming as our window of opportunity to achieve progress, because Indonesia is very rich in natural resources, both mineral materials, plantation products, marine products, as well as new and renewable energy sources," the Head of State said. 

The downstreaming that Indonesia wants to do is downstreaming that transfers technology, utilizes new and renewable energy sources, and minimizes environmental impacts. 

Downstreaming must also optimize local content, partner with micro, small, and medium enterprises (MSMEs), farmers, and fishermen, so that the benefits are felt directly by the little people.

The President added that downstreaming is not only carried out on mineral commodities, but also non-mineral commodities such as palm oil, seaweed, coconut, and other potential commodities.

"This effort is ongoing. Although it is bitter for raw material exporters, it will also be bitter for state revenues in the short term. However, if the ecosystem is established, I surely that this will end happily, especially for the Indonesians. 

Furthermore, since the government imposed a policy to stop nickel ore exports in 2020, nickel downstream investment has grown rapidly. In fact, currently 43 nickel processing plants have been established which will create huge employment opportunities.

The President also believes that if downstreaming is carried out consistently in various commodities, Indonesia's per capita income, which reached IDR 71 million in 2022, will double significantly in the next 10 years.

"This is just one commodity and if we are consistent and able to downstream for nickel, then copper, then bauxite, then CPO, and seaweed, and others, based on calculations that we do, in the next 10 years, our per capita income will reach IDR 153 million or US$10,944," President Jokowi explained. 

"In 15 years, our per capita income will reach IDR 217 million or US$15,860. In 22 years, our per capita income will reach IDR 331 million or US$ 25,025,"

Later, in his speech, the President also revealed three foundations needed to realize the vision of an Advanced Indonesia in 2045.

First, infrastructure development and connectivity that will ultimately improve Indonesia's competitiveness.

"Based on the Institute for Management Development (IMD) report, our competitiveness in 2022 will increase from 44^th to 34^th.This is the highest increase in the world," the President said.

Second, development from villages, peripheries, and outermost regions that ultimately equalize the Indonesian economy. For this development, the President said, the Government has disbursed the Village Fund to reach Rp539 trillion from 2015 to 2023.

Third, consistent structural reforms, especially synchronization and simplification of regulations, ease of licensing, legal certainty, and prevention of corruption.

Closing his speech, the President emphasized that the effort to achieve the Golden Indonesia 2045 is a long-term and sustainable effort.