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    Transformation of Economic Fundamentals in a Year of Jokowi-JK Government

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    Governance of President Joko Widodo have succeed improving number of employment in first semester 2015. It has reached 685 thousands people (increase of 12,31% compared by 2014).

    “This is the result of an effort to change Indonesia better and prosperous,'' said President Jokowi to media related his government (19/10).

    Furthermore, Jokowi explained the Indonesia change strategy through the transformation of economic fundamentals, which is based on three aspects. (Table 1). First, change the consumption-based economy become an production-based economy. Second, the policy of fuel subsidy is diverted for infrastructure development and also subsidies for poverty alleviation.

    Before this policy is applied, the subsidies more enjoyed by the rich people. The unfair of energy subsidies makes chasm between rich and poor is widening. There are 20% of wealthy people who enjoy 51% subsidy. While 20% of poor people enjoy 7% subsidy. '' It's certainly not fair,'' said the President. Now has been reallocated of fuel subsidies amounted to Rp211,3 trillion.

    Most of reallocation the subsidies to finance the construction of infrastructure, such as tolls sea and the new railway network outside of Java (Rp 21 trillion). Distribution the Prosperous Family Card (KKS) (Rp 9.3 trillion), Indonesia Health cards (KIS) (Rp2.7 trillion), Indonesia Smart Card (KIP) which reaches 19.2 million students (Rp7.1 trillion), the construction of 25 new reservoirs and irrigation of 1 million hectares of rice fields (Rp 33,3 trillion). (Table 2).

    The third transformation of economic fundamentals is to encourage the equitable development outside Java. It was seen from the accelerated development of infrastructure in some places, such as highway construction of Trans-Sumatra and Papua. Overall, the realization of domestic and foreign investment in the first half of 2015 amounted to Rp 259,7 trillion - 44% of which is an investment outside Java. This is 25% increase compared to the same period last year with the realization amounted Rp 222,8 trillion - 41% of investment outside Java. (Table 3).

    It's makes the employment continues to grow, economics more excited, and Indonesia more productive.

     

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