Category: Economics

The World Bank has expressed its appreciation for Indonesia’s unwavering dedication to transforming its economy into a green and sustainable one. Satu Kahkonen, Head of World Bank’s Representative Office for Indonesia and Timor-Leste, personally conveyed this appreciation to Moeldoko, Chief of Staff to the President, during a meeting held at Bina Graha Building in Jakarta on Tuesday (16/5) afternoon.

Highlighting the intricate link between economic growth and carbon emissions, Kahkonen acknowledged that while Indonesia’s economic expansion has led to increased carbon production, the country has managed to mitigate its impact.

“Indonesia’s economic growth does have implications for carbon emissions, similar to other developing nations. However, the good news is that Indonesia’s carbon emissions are not growing at the same pace as its per capita income,” she explained.

Supporting her statement with data from the Indonesia Country Climate and Development Report (CCDR), Kahkonen pointed out that Indonesia’s economy has consistently grown, while carbon emissions have displayed a downward trajectory.

This positive trend is attributed, in part, to the Indonesian government’s range of policies aimed at land restoration, deforestation prevention, enhanced land mapping, and the establishment of specialized institutions for land management.

In response, Dr. Moeldoko expressed his gratitude for the World Bank’s valuable contribution through the independent CCDR research. The report not only illuminates the interplay between economic growth and climate change but also highlights Indonesia’s proactive measures to address this global challenge.

Under President Joko Widodo’s leadership, the Indonesian government has prioritized climate change issues. Long-term commitments, such as targeting carbon neutrality by 2060 in alignment with the Paris Agreement, demonstrate Indonesia’s dedication. Furthermore, when Indonesia assumed the presidency of the G20 last year, the imperative discussions centered around the green economy and energy transition.

Moeldoko emphasized President Jokowi’s effective policies in curbing deforestation, including the influential Presidential Instruction (Inpres) No. 8 of 2018, which imposed a moratorium on palm oil plantation permits. Additionally, President Jokowi’s vision encompasses the development of an expansive 30,000-hectare green industrial zone in North Kalimantan Province (Kaltara), positioning Indonesia as a global leader in environmental initiatives.

Citing the positive correlation between economic growth and emissions reduction, Dr. Moeldoko conveyed his optimism that Indonesia will continue to lead by example. He emphasized that the government’s commitment to energy transition goes beyond mere rhetoric or empty promises, reflecting a genuine determination to create a sustainable future.

The recognition from the World Bank serves as a testament to Indonesia’s resolute efforts in pursuing a greener and more environmentally friendly economy. As the country marches towards a future characterized by sustainability, the world watches closely, inspired by Indonesia’s commitment to preserving the planet for generations to come.

Jakarta – Dr. Moeldoko, the Chief of Staff to the President, has emphasized the need for stronger cooperation between Indonesia and South Korea in the area of human resource empowerment. During a high-level meeting with South Korean Ambassador to Indonesia, Lee Sang Deok, held at the Bina Graha Building, Jakarta, on Tuesday (11/4), the Chief of Staff conveyed his aspirations for enhanced collaboration and training opportunities for human capital development.

“With a particular focus on empowering the workforce and cultivating skilled professionals, I am keenly interested in exploring concrete avenues of cooperation between the two countries. Recognizing the significance of this endeavor for the future of Indonesia’s children will become the ambassador’s legacy as well. So we must realize this shared vision and translate it into tangible outcomes,” Moeldoko said. 

Moeldoko commended South Korea for its active engagement in economic investment in Indonesia, as well as its commitment to recruiting and training Indonesian workers in specialized fields. Acknowledging the positive impact of such investments, the Chief of Staff expressed his desire to expand cooperation beyond economic realms and delve into knowledge-sharing and technology transfer.

Among the key areas of interest, Moeldoko highlighted the agricultural sector, expressing hopes for joint efforts in enhancing the knowledge and skills of young Indonesian farmers. By leveraging South Korea’s expertise and experience, the Chief of Staff envisioned significant advancements in Indonesia’s domestic agricultural industry.

“For instance, Indonesia’s extensive use of turbines for nuclear power generation highlights the potential for collaboration in research and development, particularly in the field of nuclear power,” emphasized Moeldoko. “South Korea, as a leading nation in this sector, possesses valuable knowledge and technology that can greatly benefit our country through knowledge and technology transfer.”

The meeting between the Chief of Staff to the President and the South Korean Ambassador marked a significant milestone as both countries celebrated the 50th anniversary of their diplomatic relations, which were established in 1973. It is noteworthy that Indonesia holds a special partnership status with South Korea among Southeast Asian nations, highlighting the depth of their bilateral ties.

With South Korea ranking third in terms of investment projects in Indonesia, totaling 2,444 projects, and an estimated investment value of 1.66 billion US dollars, the potential for strengthened cooperation and mutually beneficial outcomes remains promising.

Jakarta – In his address at Indonesia Best 50 CEO Awards event, on Thursday (6/4), Chief of Staff to the President, Moeldoko, commended Indonesia’s solid and resilient domestic economy, shedding light on positive indicators. Amidst a gathering of prominent business leaders organized by The Iconomis media, Moeldoko expressed optimism for the country’s future prospects. Notably, the Purchasing Manager Index (PMI) remained robust at 51.2 in February 2023, while the Consumer Confidence Index (CCI) soared to an impressive 122.4. Moreover, retail sales witnessed a notable year-on-year growth of 2.60 percent.

Moeldoko’s message resonated with the audience as he stated, “Our domestic economic performance is still solid. The government is optimistic that Indonesia’s economy will grow at a rate of 5.3 percent.” The Chief of Staff delivered these encouraging words during his insightful speech at the LPP RRI Jakarta Auditorium on Thursday (6/4).

Attributing the achievements to President Joko Widodo’s astute leadership, Moeldoko emphasized the President’s ability to make bold yet calculated decisions while maintaining a cautious approach. This careful strategy has ensured the country’s continued growth and resilience even amidst global recession threats and inflationary pressures.

“President Jokowi’s adeptness has guided us through the pandemic, making Indonesia a country that continues to grow its economy despite global recession threats and inflationary pressures,” added Moeldoko.

He also highlighted two significant phenomena impacting the nation’s future economic development: diminishing globalization and rising digitalization. These paradigms have brought about disruptions, market shifts, changes in consumer behavior, and intensified business competition. Recognizing the urgency, Moeldoko stressed the need for agile strategies to navigate these challenges effectively.

Additionally, Moeldoko emphasized the accelerated pace of digital transformation across Indonesia. The government forecasts exponential growth for the country’s digital economy, projecting an eightfold increase by 2030, with a staggering value of Rp 4,531 trillion compared to today’s Rp 632 trillion.

“Moving forward, leaders must master digital leadership. A study suggests that companies with digital leadership achieve better financial performance, deeper employee engagement, and a diverse inclusive culture,” he concluded.

Jakarta – While Indonesia is currently witnessing economic growth, the world may be edging toward a global recession and a string of financial crises. Thus, the government must not be caught off guard, warned Deputy Chief of Staff for Economy at the Executive Office of the President Edy Priyono. Without any preparation, the risk of global recession can hinder domestic economic growth. 

“We must be grateful that our economy has shown consistent growth, even in this third quarter. However, shall we not forget that despite this achievement, a huge potential global recession should be kept an eye on,” said Edy, at the Bina Graha building, Jakarta, Tuesday (8/11).

Edy ensured that the authorities would continue to work hard to maintain the economic growth. He went on to say that the government would further implement inflation control policies, increase investment value, and encourage export growth.

“The government will disburse various incentives and social assistance to help the industry and the people who need it,” said Edy.

Recently, the Central Statistics Agency (BPS) noted that amid global economic congestion and rising domestic inflation, Indonesia’s economy in Quarter III-2022 grew rapidly to 5.72 percent. The number increased from 5.45 percent in Quarter II. This figure exceeds the economic growth of other countries, such as China (3.9 percent), the United States (1.8 percent), Germany (1.2 percent), the European Union (2.1 percent), and South Korea (3.1 percent).

Edy said that Indonesia’s economic growth was supported by strong domestic demand, as well as high investment and export performance. Report said that household consumption grew 5.39 percent (year on year), investment 4.96 percent, and exports grew 21.64 percent.

“Export growth is supported by strong demand from major trading partners and policies to accelerate palm oil exports. For investment, growth occurs in non-building investment,” he added.

Furthermore, the national economic growth was boosted by the regional economic surplus with the highest record came from Sulawesi-Maluku-Papua (Sulampua) region, followed by Bali-Nusa Tenggara (Balinusra), Java, Kalimantan and Sumatra.

Jakarta – Chief of Staff to the President Moeldoko sent his appreciation towards hundreds of people rallied in Jakarta and some other parts of the country, against subsidized fuel price hike amid soaring inflation and geopolitical tensions. 

Particularly, as huge mass rallied around the Arjuna Wijaya statue (also known as the Horse statue) in Central Jakarta on Tuesday (13/9) had delivered their aspirations peacefully, Moeldoko said, the whole situation in Indonesia’s biggest city remained conducive.

“I appreciate the protesters, especially those who rallied in front of the Horse Statue. Despite differences, people express their opinions in an orderly manner,” said Moeldoko, in Jakarta, Tuesday (13/9).

Moeldoko also said that the administration of President Joko Widodo and Vice President Ma’ruf Amin have always been open to criticism and dialogue. Through the Executive Office of the President (KSP), he said, the public are welcomed to deliver their aspirations. The Office, then, will be committed to convey the messages to President Jokowi himself.

“The public are welcomed in the KSP office as it guarantees an open and transparent public dialogue,” he said.

The retired military commander also acknowledged security personnel who tirelessly hold protesters’ temper in check.

“Persuasive and humane approach should be continued to be carried out in the field,” said Moeldoko.

Meanwhile, government has decided to hike subsidized fuel price by 30% on Saturday (3/9) over a pressure of ballooning energy subsidy budget. President Jokowi himself said that he had little choice but to channel the swelling fuel subsidy to aid the poor, providing economic cushion as the country recovers from the pandemic downturn.