Thailand
Indonesia: Jokowi Asks Financial Industry to Avoid Wait-and-See Policy
TEMPO.CO, Jakarta – President Joko Widodo (Jokowi) has asked the financial sector not to adopt a wait-and-see policy because the current economic conditions in Indonesia are conducive to the development of business.
“If the financial industry just waits and sees, when will it act?” President Jokowi said at the 2018 Financial Service Industry Annual Meeting in Jakarta on Thursday night.
He remarked that if the economic actors are waiting because simultaneous regional head elections (pilkada) will take place in 2018, then they may never take the initiative because there is a pilkada every year. “What are you waiting for?” the president asked.
The president requested that political affairs be separated from economic and business matters. “Let the elections and the economy run side by side. The economy is run in the economic realm, and politics plays out in the political sphere,” he noted.
Jokowi also reminded the financial industry, especially the banks, to concentrate on activities beyond simply collecting funds.
“Otherwise, the banks` debtors will continue to remain in debt,” he stressed.
He stated the government encourages people to connect with the banking system.
The government is enforcing social forestry and land certificate programs, and such projects are linked to the banking sector.
“In 2017, as many as five million certificates were issued; this year, our target is seven million certificates,” he elaborated.
He mentioned that of the 126 million plots of land, currently, only 46 million have land certificates, and 80 million plots of land have yet to obtain certificates. “If in a year, only 500 thousand certificates are issued, then we need decades to complete the certification of land,” he pointed out.
The president also asked state-owned as well as regional government enterprises, the BUMN and BUMD, and banks to examine models of financing, mainly infrastructure financing, to reduce dependency on the state budget. The state budget is for the benefit of the people, he stressed.
“The region can issue local bonds, but the funds must be used to build a productive infrastructure,” added President Jokowi.
Source: https://en.tempo.co/read/news/2018/01/22/056915035/Jokowi-Asks-Financial-Industry-to-Avoid-Wait-and-See-Policy