ANALYSIS OF JOKOWI ECONOMIC POLICY

                                       ANALYSIS OF JOKOWI ECONOMIC POLICY
                                                                   By David Raja Marpaung

A. Economic Package Vol I

President Joko Widodo (Jokowi) finally launched a three economic policy package that aims to boost the economy of Indonesia. The package also aims to address the world economic developments that impact on the economy of many countries, including Indonesia.The policy package was issued September 2015. Phase I of the first policy, encouraging national industrial competitiveness through deregulation, de-bureaucratization, law enforcement and business certainty.  

There are at least 89 regulatory overhaul of as many as 154 proposed rules to be overhauled, so that it can eliminate duplication, strengthen the coherence and consistency and cut regulations that are not relevant or hamper the competitiveness of national industries Moreover, it has prepared 17 draft regulations, 11 draft a presidential decree, two draft presidential order, 63 draft ministerial regulation, and five other ministers to support the rule of the deregulation process.  
The government also permits simplification, improved working procedures of licensing, strengthening the synergies, improving service quality, as well as the use of electronic-based services. The Government committed to resolving all the deregulation package in September and October 2015.

Second, accelerate the national strategic projects to remove obstacles and blockages in the implementation and completion of a national strategic project. This was done to simplify the clearance, settlement spatial and land supply, as well as the acceleration of the procurement of government goods and services.

Third, increased investment in the property by issuing policies to encourage the construction of housing, especially for low-income communities (MBR), as well as investment opportunities were greater in the property sector.This package aims to boost the real sector Indonesia which ultimately provide the foundation for the progress of our economy leap forward. Thus, it can be concluded that the policy of economic rescue package first phase focuses on three major things, namely improving the competitiveness of the industry, accelerate the national strategic projects, and encourage investment in the property sector.B. Economic Package Volume II

Economic Policy Package Phase II was launched on Tuesday 29 Semptember.Berbeda with the Economic Policy Package I, which includes many regulations, this time President Joko Widodo steer economic policy package to focus on improving the investment. Forms of this effort in the form of deregulation and de-bureaucratization regulations to facilitate investment, both domestic investment (domestic) and foreign direct investment (FDI). This is the complete contents of the second phase of economic policies of President Jokowi:

1) Ease of Investment Services 3 HoursTo attract investment, policy breakthroughs that will do is provide a fast service in the form of an investment license within three hours in the Industrial Area. With permission, investors can directly conduct investment activities. Regulation is needed for quick service investment 3 hours are BKPM Chief Regulation and Government Regulations regarding Industrial Zone as well as the Regulation of the Minister of Finance.

2) Handling Tax Allowance and Tax Holiday FasterAfter the 25-day requirement and application met, the government pocketed the investment decisions that can receive tax allowance or not. As for the tax holiday, the Finance Minister Bambang Brodjonegoro decide endorsement maximum 45 days after all requirements are met.

3) Government Not Pick VAT For TransportThe policy set forth regulations that have been published, the Government Regulation number 69 in 2015 on the import and delivery of certain transport equipment and the services are taxable, certain related transport is free of VAT. The government will provide incentives not levy VAT on several means of transport, mainly shipbuilding, railways, aircraft, and includes spare parts

4) Incentive facilities in Zone Bonded Logistics CenterWith the logistics center, the manufacturing company does not need to import and do not need to take the goods from abroad for quite take away from bonded warehouses. According to the plan until the end of the year there will be two bonded logistics center is ready to operate, ie in Cikarang related to the manufacturing sector and in related fuel Merak. "We want with this regulation, our competitiveness for the bonded logistics center could be strengthened and the more bonded logistics center operating in Indonesia," said Bambang Brodjonegoro Minister of Finance.

5) Incentives deposit interest tax deductionThis incentive applies especially exporters are obliged to report foreign exchange export proceeds (DHE) to Bank Indonesia. DHE is stored in the form of deposits of one month, the rate will be lowered by 10 percent, 3 months, to 7.5 percent, 6 months to 2.5 percent and above the 6 month 0 percent. If converted into rupiah, then charge 1 month to 7.5 percent, 5 percent of 3 months, and 6 months straight 0 percent.

6) Streamlining Permits Forestry SectorPermission for investment and productive forestry sector will go faster. Currently the Ministry of Environment and Forests issued a total of 14 licenses. In phase two policy packages, the permit process streamlined into six licenses. Downsizing involves the revision of regulation 9 of the Minister of Environment and Forests.

C. Economy Package Volume III

President Joko Widodo make economic policy Volume III for the period from the beginning of October. The focus this time a package of measures to improve and simplify the business climate, as well as clarifying the licensing and terms of doing business in Indonesia. In this package there are two major points that the tariff reduction and or price. Secondly, simplification of land clearance, land sector for investment activities.

 For the first group of fuel prices, the price of aviation fuel, liquefied petroleum gas 12 kilograms, pertamax and effective pertalite down since 2015. The figure is explained Mr. Sudirman (Sudirman Said Minister of Energy and Mineral Resources). Fixed premium price. Meanwhile, for the industrial gas prices will be set according the purchasing power of the industry. Its because the government needs to change the rules on non-tax revenues (non-tax). Therefore, the decision to lower the price of gas industry is done by reducing the state's revenue from non-tax revenues. The decline in gas prices did not affect the receipt from the gas company's contract of work, only reduced its non-tax revenues and the cost of distribution.

Furthermore, for the electricity tariff of PT PLN (Persero) had imposed tariffs adjustment (adjustment) and for customers with I3 and I4 type of adjustment has been made. In this package, the state-run Electricity also adds incentive to provide discount prices on electricity consumption for midnight. (Especially from 23:00 to 08:00 am at 30%)Volume III package of measures also changed the policy regarding the recipient's business credit (KUR). Previously, families who have a regular income alias KUR employee can not be named for fear konsumtif.Sebab the fact that many employees, his wife go to the salon, warkop. So long used for productive activities such as the KUR given that it was categorized as productive KUR not consumptive.

The next point, the simplification of permit land to the land sector for investment activities by revising the Regulation of the Minister of Agrarian and Spatial No. 2 of 2015 on Standards of Agrarian Services and Settings.

In the revision, the points concerning the granting of land rights, the right to cultivate (HGU), granting the rights, privileges, and renewal rights will be simplified with a shorter time. To request HGU land area of ​​200 hectares (ha) that previously took 30 to 90 days is simplified to just 20 working days. As for the land over 200 ha to 45 working days. Meanwhile, the extension of the concession area of ​​200 ha previously 20 to 50 days has been shortened to seven working days and 14 working days to land over 200 ha.

D. Economic Package Volume IV

 In the economic package of volumes IV, the policy is more focused on the issue of labor, business credit (KUR), to the export financing institution. Coordinating Minister for Economic Affairs Nasution said the government decided to establish a formula for a simple and clear to the provincial minimum wage (UMP). It aims to open the widest possible employment and improve the welfare of workers. In addition, the minimum wage formulation systems is also a proof of the presence of the state in the form of the provision of social safety nets. Because, with this formula ensures that the workers do not receive rations low wages, and employers also gain certainty in the attempt. So, with this policy also ensured labor costs rise each year with measurable magnitudes.

In addition, the presence of the state on society is by reducing the burden of living expenses through the magic card Jokowi. Countries present in fostering tripartite social dialogue between workers and employers, so no need to waste time and energy as we count through realization.The second policy regarding such KUR originally been included in the package of economic policies previously issued. The emphasis, in this package modified loan recipient and will be given to individuals or employees who do economically productive activities. KUR can be given to prospective Indonesian migrant workers who will work abroad. These credits, could also be given to family members of workers who earn fixed and do economically productive activities. As well as to the Indonesian workers who work abroad and open a business.