How will history reflect on President Joko Widodo’s administration? This month we look at some features of the two distinct terms of the Jokowi era: the infrastructure focus of the first term and the second term characterised by business environment reform and the pandemic.
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In the first term, fiscal space was created through the adoption of fuel prices that reflected market levels which helped finance infrastructure spending greater than during the final term of Jokowi's predecessor.
Infrastructure investment was a success though with a more modest than desirable GDP payoff owing, at least in part, to stubbornly poor quality of investment.
Fuel price adjustments were unable to be sustained and proved an ongoing issue through both Jokowi terms.
The second term focused on the challenges facing businesses and the enactment of the Job Creation Law was a major milestone.
Businesses are still impeded by mounting non-tariff barriers to trade and investment, placing Indonesia at a major disadvantage.
The pandemic crisis showed Indonesian policymakers at their best. Defining the challenge and adopting the needed scope for action.
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