Indonesia rolls out strategies to ease economic pressure

Jakarta (VNA) - President Joko Widodo on December 12 laid out strategies that could bring about a competitive edge for Indonesia when the country faces pressures from other nations over its trade policies on palm oil and nickel.

By reducing imports and boosting exports, the current account deficit could be narrowed and create a stronger comparative advantage for the country, the President said during his visit to automotive manufacturer Isuzu Astra Motor Indonesia (IAMI) in Karawang, West Java. 

Indonesia has just shipped Isuzu Straga vehicles to the Philippines. However, within the next three years, the cars will be exported to 20 other countries in Africa, East Asia and the Middle East, he said.

Indonesia’s automobile exports needed to be increased to at least 1 million vehicles by 2024, from less than 300,000 vehicles currently.
That way the current account deficit can be controlled and the trade balance can be managed, according to the President.

The Indonesian Government has rolled out several policies to court more investment, particularly for the production of goods that substitute its import needs or goods that are oriented for exports, including last year’s revamp of tax holiday incentives directed toward pioneering industries, such as petrochemical, electronics and pharmaceutical manufacturing, among others.
In addition, the government is also drafting an omnibus law on job creation that aims to simplify regulations to make it easier for investors to invest in the country, effectively amending articles in more than 70 laws./.