Thursday, May 22, 2014
Indonesia's Jokowi said to plan market-friendly policiesIndonesian presidential front-runner Joko "Jokowi" Widodo has assured top fund managers that he would cut fuel subsidies, improve infrastructure and enact major bureaucratic reforms to attract investment if elected in July. In a private event on Tuesday attended by representatives of the top 10 asset management funds in Indonesia, Jokowi offered a rare glimpse of policies that he has yet to make public ahead of a July 9 presidential election. "His key election platform is market-friendly with a focus on lifting workforce capability through education, bureaucratic reform, infrastructure construction and encouraging energy investment," investment firm CLSA, the organisers of the Jakarta event, said in a research note. CLSA officials declined to identify the other fund management companies at the event. Jokowi is governor of Jakarta. His populist style has won him much support in the world's third biggest democracy, where years of rapid growth have started to slow, threatening to widen a gulf between the rich and the growing ranks of poor. But the election is not yet won and one recent poll showed Jokowi's lead had narrowed slightly, although he was still 15 points ahead of his closest rival. The only major economic policy that Jokowi has announced has been that he would reduce fuel subsidies within a four to five-year period. He provided more details of that policy to the fund managers, saying ending wasteful fuel subsidies would save the government $30 billion. Those funds would be reallocated to building roads, ports and airports, CLSA said.
Posted by Susan Diaz at 7:23 PM