Indonesia president calls to ‘reboot’ economy in the middle of pandemic

JAKARTA (Reuters) – Indonesia must use the pandemic to reboot Southeast Asia’s biggest economy, including by enhancing food and energy security, in addition to processing more natural deposits in your home, President Joko Widodo stated on Friday.

FILE IMAGE: Indonesian President Joko Widodo using protective mask salutes to Indonesian parliament members as he gets here in the past talking ahead of the 75 th Independence Day, at the parliament building in Jakarta, Indonesia, August, 14, 2020 in this picture taken by Antara Foto. Antara Foto/Akbar Nugroho Gumay/ via REUTERS

Widodo made the remarks in his yearly state of the union speech to parliament. Due to coronavirus safety measures, less than half of the lawmakers were present for his address, with the rest viewing online.

Comparing the present financial circumstance to “a computer crash” causing stagnation, he stated Indonesia, along with other nations, needs to “shutdown, reboot and reboot”.

” We need to not let the crisis bring about setbacks. In reality, we should profit from the crisis as a momentum to make a huge leap,” said Widodo, who was using a standard outfit from the Sabu individuals in the eastern part of the archipelago.

The federal government expects the economy to post near flat growth this year due to the pandemic, which has actually infected over 132,000 people and caused almost 6,000 deaths, the highest death toll in Southeast Asia. In 2015, the economy grew 5%.

Widodo stated accelerating reform of the health sector was a leading concern, along with reinforcing food supply chains, consisting of with a freshly planned food estate on Borneo island.

Under energy reforms, Widodo highlighted plans to slash costly oil imports by using fuel made from palm oil.

Indonesia’s Pertamina produced a very first batch of biodiesel made completely from palm oil last month and is set to produce 1,000 barrels of the fuel at its Dumai refinery.

The so-called D100 would take in a minimum of one million tonnes of farmer-produced palm for 20,000 barrels of production capacity per day, Widodo said, without providing a timeline.

Indonesia currently has an obligatory use of biodiesel with 30%palm oil material.

The president likewise worried a requirement to push forward the downstream processing of raw materials including transforming coal into gas and nickel ore into ferro nickel and stainless-steel, as part of federal government efforts to develop jobs.

Reporting by Gayatri Suroyo, Fransiska Nangoy and Maikel Jefriando; Modifying by Ed Davies

Reuters.

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