Thursday, 29 October 2020 | 14:53 WIB

Darmin Optimistic on Good Economic Growth Despite Uncertain Global Conditions

Indonesia Coordinating Minister for Economic Affairs Darmin Nasution (politiktoday)

JAKARTA, NETRALNEWS.COM - Indonesia Coordinating Minister for Economic Affairs Darmin Nasution believes Indonesia's economy can grow better in 2019, despite global uncertainties.

"Although global conditions do not support, domestic conditions and policies that have been taken will drive growth in 2019," Darmin said in Jakarta.

This was revealed by Darmin when giving a keynote address at the HSBC Economic Update event which was attended by business people.

Darmin said that there were four major policies that could make Indonesia's economy remain strong in facing global challenges.

First, increasing the competitiveness and improvement of the business climate, including through Online Single Submission (OSS), provision of tax incentive facilities, and development of vocational programs.

In the short term, the government will also make improvements to procedures to reduce export costs and select commodities in leading sectors.

Second, conduct tax relaxation policies that can invite investors to invest in certain industrial sectors.

"For the first time, we formulated, making rules regarding tax holidays that are as big as now. Nearly 200 industrial activities are now eligible to obtain tax holidays," Darmin said.

In addition to clarifying the regulations, giving incentives such as tax exemptions can be given for five to 20 years as needed.

Most industries that have been given fiscal facilities are industrial activities that were initially fulfilled through imports such as petrochemicals with all derivatives, iron and steel including electronics, as well as basic chemicals including gold.

Third, encourage increased exports, especially superior commodities originating from nature by strengthening downstream to strengthen added value.

"In addition, simplification of procedures to reduce export costs, economic diplomacy and increase market access," Darmin said.

Fourth, improve the quality of Human Resources (HR) in the form of revamping the vocational education and training system at the Vocational Training Center, Vocational High School and Polytechnic.

Regarding this HR improvement, the government is also ready to provide tax super deduction incentives to industries that want to use labor from various vocational schools.

"The government has formulated super deduction, that anything that is assisted by the industrial world in the context of vocational training, can lend experts, give machines for practice, and provide an internship, will be calculated in the form of value and will be replaced 200 percent of what he spent," he said.

He ensured the improvement of various vocational programs so that teaching and learning activities took place effectively to form graduates who were ready to work according to industry needs.

"Every vocationa school must have a clear module. Every year students need to get two competency standards," Darmin said.

Darmin is optimistic that these various efforts will produce results and be able to improve the quality of Indonesia's economy so as not to be vulnerable to external pressure as has happened in 2018.

"In such a situation, the economic growth recorded at 5.17 percent (in 2018) is relatively good. Because, this figure hardly occurs in other countries, amid the global economic uncertainty that is occurring," he said.