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Jokowi Sees Pandemic as Chance to Reform Indonesia for Good

Jokowi Says Pandemic Is Opportunity to Reform Indonesia for Good

The coronavirus pandemic is an opportunity to transform Indonesia’s economic, legal, health and education systems and put it on path to become a developed country, according to President Joko Widodo.

“We must turn this crisis into an opportunity to make big leaps,” Jokowi, as the president is known, said in his customary address to the joint house of parliament before the independence day. “And 25 years from now, at the centenary of the Republic of Indonesia, we must achieve great progress and make Indonesia a developed country.”

Indonesia has struggled to contain the deadliest coronavirus outbreak in Southeast Asia that’s also taken a heavy toll on its economy with millions of people rendered jobless in its services and manufacturing sectors. Jokowi is due to unveil measures to revive the economy in his annual budget speech later Friday after setting aside about $50 billion in fiscal stimulus to counter the impact of the pandemic this year.

With the global economy facing its worst crisis ever, “all countries must undergo a brief process of shutdown, restart, and reboot,” Jokowi said. “And all countries have the opportunity to reset all the systems.”

Jokowi Sees Pandemic as Chance to Reform Indonesia for Good

Indonesia’s economy shrank 5.32% year-on-year in the second quarter, its first contraction in more than two decades, as movement restrictions to contain the coronavirus outbreak decimated business. The government plans to spend as much as 1,476 trillion rupiah ($100 billion) in the six months through December to boost the economy, Finance Minister Sri Mulyani Indrawati said last week.

“This is the time for us to fundamentally renew ourselves, to make a major transformation, to implement grand strategies in the fields of economy, law, governance, social, culture, health and education,” Jokowi said. “We must undertake fundamental reforms in the way we work. Our readiness and speed are being tested.”

The president’s strategy of balancing healthcare and the economy by shunning a complete lockdown has meant the virus is still rampant in the country with no signs of easing. Infections surged following the relaxation of social distancing rules from the end of May and the death toll has neared 6,000, the highest among Southeast Asian nations. The virus has also infected more than 130,000 people, with the cases more than doubling since the end of June, official data show.

While the pandemic has forced rapid changes to Indonesia’s healthcare systems, fundamental reforms in the health sector must be accelerated with a focus on disease prevention and a healthy lifestyle, Jokowi said. The government set aside $6 billion for the healthcare sector this year after temporarily scrapping a fiscal deficit limit and getting the central bank to directly finance government spending.

Other highlights of Jokowi’s speech:

  • To develop food estates in partnership with private sector and farming community to ensure food security
  • Industrial estates to be built in various regions to boost employment opportunities
  • Continue focus on processing of natural resources such as nickel ore, palm oil and coal to reduce nation’s current-account deficit

©2020 Bloomberg L.P.