5/23/2016

Jokowi failed to reach the target of economy growth in terms of number

Jokowi failed to reach the target of economy growth in terms of number

In the first quarter, the economy growth of the state reached only 4.92% less than the same period of previous year which was 5.04%. This achievement of government is still below the market consensus which is 5.1%. 
Regarding the failure to boost the rate of economy growth, jokowi blamed on his ministers who fail to execute the rapid absorption of budget and programs including 4 consecutive economy policy packages expected to increase the rapidity of economy growth yet proven to be ineffective.
Jokowi thus plan to call his ministers for the evaluation of economy policy package in presidential palace.


As reported by BPS data, Gross domestic product (GDP) or output economic activity Indonesia during the first quarter of 2016, only Rp 2,947 trillion, is not much different from the GDP the fourth quarter of 2015 amounted to Rp 2.945 trillion, even lower compared to the third quarter 2015 Rp 2,998 trillion.

This means during the first quarter of 2016, jokowi fail to bring significant change in economy despite series of policy economy package to boost investment, bolstering competitiveness, and increasing purchasing power. Jokowi is also popular for his breakthrough in restructuring cumbersome bureuacracy and groundbreaking the infrastucture yet bring no significance on the economy growth signaled by lower scale of rate below market consensus. 

on the other hand, the global economy slowdown places impact indicated by the lower gross domestic product worse 

compared to the same period of last year. The export to china for instance, the export of Indonesian GDP continues to shrink from Rp 599.3 trillion in the first quarter of 2015 to Rp 533.6 trillion in the first quarter of 2016.
Facing this difficulty of gross income makes the government has to find option in the midst of the main pillar of revenue from tax which encompassing almost 70% is still below the target of government. By the end of April 2016, citing data from the Ministry of Finance, total state spending has reached Rp 586.8 trillion, or 28 percent of the target in the state budget expenditures in 2016 amounted to Rp 2095.7 trillion.

Such big deficit of budget which is going contradict with the aggresive expenditure of goverment especially the infrastructure project, jokowi forces to increase the debt from overseas country willing to lend like china, usa. 
The option to cut of 50% budget as proposed as possible way proposed by finance minister is almost impossible looking the fact of massive infrastructure programs like railway trans papua and celebes, another toll way, water reservoir for agriculture will not be stagnant at the cause.

Though the rate is still lower than consesus, it's real the effect of jokowi's program to the eyes of people. BUt it's expected for the president to work on more well planned and precised .

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