President Joko Widodo urged all parties to maintain an optimistic outlook in navigating the country's economy amid global uncertainties. He conveyed this message before hundreds of BUMN executives at the opening of the Executive Leadership Program (ELP) for BUMN Directors at the State Palace in Jakarta on Wednesday, January 25, 2017.
The President began his address by presenting various forecasts regarding Indonesia's economic growth. Most predictions indicated a positive growth rate of around 5 to 5.5 percent. Based on this, the President saw no reason to be pessimistic.
"What does this mean? It means we should feel optimistic. Our projected state revenue for 2017 is Rp1,750 trillion, while state expenditure is Rp2,080 trillion. If anyone is still pessimistic, what more do you need? Why work if you're pessimistic? Work should be done with optimism—realistic optimism, grounded in objective conditions," he emphasized.
President Jokowi further stated that this optimism should be accompanied by improved performance. For example, he encouraged BUMN to set higher investment targets.
"BUMN must be bold in increasing investment targets. I received a report stating that in 2016, the investment was Rp285 trillion, the 2017 target is Rp450 trillion, and for 2018, it is Rp700 trillion. I am closely monitoring this, don’t think I am not paying attention," said the President.
However, the most crucial point he stressed was that BUMN must not become complacent with past achievements. He urged all state-owned enterprises to avoid getting stuck in routine and the comfort zone.
"The most important thing is how we anticipate these rapid changes using non-linear, non-routine, and dynamic approaches. If we remain in our comfort zone, we will be left behind, especially BUMN as business entities," he warned.
For this reason, adaptability and embracing digital transformation are essential. He highlighted that around the world, leveraging technological advancements is a necessity.
"Therefore, I want to emphasize that digital transformation must be implemented across all BUMN. If we don’t keep up with this, we will fall behind due to slower speed and service," said the President.
President Jokowi also addressed the importance of research and development (R&D) in BUMN. He expressed hope that strong R&D efforts would enable BUMN to anticipate rapid changes.
"For example, in oil and gas, we are still focused on coal, whereas in the U.S., they have discovered shale gas and shale oil. Even before we fully understand energy developments, new innovations emerge. If BUMN does not have strong R&D, we will remain stuck in daily routines while others move forward. Once again, leave the comfort zone," he asserted.
Jakarta, January 25, 2017
Head of the Bureau of Press, Media, and Information, State Secretariat