"The more foreign investment inflow we have, the faster our economy will grow. That is the basic theory. Hence, all countries are competing to attract foreign investment," Jokowi remarked at the opening of a national coordination meeting on investment here on Thursday.
According to the president, Indonesia's state budget had only impacted 16 percent of the economic growth. With the contribution of the regional budget (APBD), the impact could reach 23 percent.
This means 77 percent of the national economic growth is driven by the private sector.
"It is the private sector that drives the economy. We need to understand the importance of the private sector, how it create jobs and affects the national economy. A failure to understand this will make it more difficult for us to comprehend the importance of investment," the president elaborated.
Based on its gross domestic product (GDP), Indonesia is ranked 15th in the world. The country is eyeing to become the world's fourth-largest economy by 2045.
By 2045, Indonesia is expected to have a population of 309 million, economic growth of five to six percent, and GDP of US$9.1 trillion, while Indonesia’s income per capita is expected to reach US$29 thousand.
The president has also sought further improvement in the ease of doing business.
According to the World Bank, Indonesia, as Southeast Asia’s largest economy, its GDP per capita has steadily risen, from $823 in the year 2000 to $3,932 in 2018.
Today, Indonesia is the world’s fourth-most populous nation and the world’s 10th-largest economy in terms of purchasing power parity.
Related news: Investment drives economic growth: Jokowi
Related news: Moody's affirms Indonesia's sovereign credit rating at stable outlook
EDITED BY INE