Public questions ‘Jokowinomics’ and the
President’s fumble policies.
Foreign and domestic public, notably economists and analysts,
have started to question Indonesian president’s, Joko Widodo (Jokowi),
credibility of policies and plan as realisation remains sluggish. As recently
as Wednesday (08/04), Bank of America Merrill Lynch cut growth prediction for
Indonesia from 5.7 percent to 5.5 percent. It also slashed growth prediction
for 2016, from 6 percent initially to 5.7 percent on concern of slow progress
of infrastructure investment’s realisation due to problems from complex land
acquisition process, weak implementation capacity, and poor inter-agency
coordination. President Jokowi based his growth target ambition on
infrastructure by boosting capital expenditure early on his administration.
Capital expenditure in the 2015 revised state budget was increased to IDR 290
trillion (USD 22.4 billion) from IDR 190 trillion last year. Disbursement,
however, remains slow as only 18.5 percent of total spending was disbursed in
the first quarter of this year. Another concern is also from the fiscal side,
where deficit is anticipated due to an overly ambitious target on tax revenue
boost this year. The president targets tax revenue to increase by 30 percent in
2015, to reach IDR 1.48 quadrillon (USD 114.6 billion) and total revenue by 39
percent. A realistic tax revenue increase should be around 15 percent,
according to Goldman Sachs. The government admits that it has not prepared any
measure yet to counter the fiscal deficit that may happen but seems to be
confident that any concrete steps would be ready in May, June, or July this
year. In other policy areas, public also appears to be doubtful of the ability
of the president to produce sound policies. Jokowi has reversed some policies
he made in his six months in office. A recent one is the cancellation of a
recently signed presidential regulation which provides a substantial rise in
car purchase allowances for top officials worth IDR 158 billion (USD 12.2
million). When cancelling, the president defended that he did not know the
detail of the regulation content, which exposes his weakness with regard to
detail and policy making. Some reversals of Jokowi’s policies had been made
earlier (in the table). After the election in 2014, Jokowi was burdened with
high expectation created by international and domestic audiences to be the
person who implement reforms in Indonesia. The expectation seems to fade now
that his administration has shown some setbacks. (Source: The Jakarta Post,
Bisnis Indonesia, and The Jakarta Globe)
Multiple Choice
1.
Bank of America Merrill Lynch cut growth
prediction for Indonesia from 5.7 percent to 5.5 percent. It also slashed
growth prediction for 2016, from 6 percent initially to 5.7 percent on concern
of …., except
a.
slow progress of infrastructure investment’s
realisation due to problems from complex land acquisition process
b.
weak implementation capacity
c.
poor inter-agency coordination
d.
simple
acquisition process
2.
A realistic tax revenue increase should be
around ….
a.
15%
b.
10%
c.
25%
d.
20%
3.
the cancellation of a recently signed
presidential regulation which provides a substantial rise in …. for top officials worth IDR 158 billion (USD
12.2 million)
a.
house purchase allowances
b.
car purchase allowances
c.
apartement
allowances
d.
education
allowances
4.
…. in the 2015 revised state budget was
increased to IDR 290 trillion (USD 22.4 billion) from IDR 190 trillion last
year.
a.
Disbursement
b.
Allowance
c.
Capital expenditure
d.
Tax
revenue
5.
Another concern is also from the fiscal side,
where deficit is anticipated due to an overly ambitious target on …. boost this
year.
a.
Disbursement
b.
Allowance
c.
Capital
expenditure
d.
Tax revenue
Grammar
1.
Modal
-
it has not prepared any measure yet to counter
the fiscal deficit that may happen but seems to be confident
2.
To
Be
-
Capital expenditure in the 2015 revised state
budget was increased
-
deficit is anticipated due to an overly
ambitious target on tax revenue boost
3.
Tenses
-
Bank of America Merrill Lynch cut growth
prediction for Indonesia from 5.7 percent to 5.5 percent (Present Tense)
-
Jokowi has reversed some policies (Past Perfect
Tense)
-
the president defended that he did not know the
detail of the regulation content (Past Tense)