Boedhi Reza

The 2024 Indonesian presidential election was attended by 3 participants. They are Anies Baswedan, Ganjar Pranowo, and Prabowo Subianto. Each candidate has a vision and mission to win the election, including a strategy in the economic sector. Each candidate has a focus on several areas, one of which is economics. The choice of strategy in the economic sector is based on important issues relating to current conditions up to the next 5 years. In general, All presidential candidates refer to the target of Indonesia Emas 2045.

Anies Baswedan has a vision of “A Fair, Prosperous Indonesia for All”. To achieve this vision, the mission that will be carried out in the economic sector is to “Eradicate poverty by expanding business opportunities and creating jobs, realizing fair wages, ensuring economic progress based on independence and equality, and supporting Indonesian corporations to succeed in local and grow on the global”. In this mission, there are 16 agendas that focus on several issues including economic equality, job creation, fiscal policy and monetary policy. Apart from that, Anies Baswedan also included a maritime-based economic agenda and a creative economy

Ganjar Pranowo carries the vision “Towards a Superior Indonesia: Fast Action to Realize a Just and Sustainable Maritime Country”. To achieve this vision, there are several missions that will be implemented as follows:

• Mission 3: Accelerate economic development based on knowledge and added value. The following are 3 important points from this mission: A superior, competitive economy. Food sovereignty. Indonesia is the centre of the sharia economy and halal industry.
• Mission 4: Accelerate equitable economic development. The following are important points: Fair and equitable development. Happy and prosperous.
• Mission 6: Accelerate the realization of a sustainable environment through a green and blue economy. This mission has 3 important points, including: Sustainable environment. A green economy based on energy. Blue economy from the marine sector.

Prabowo Subianto carries the vision “Together with Advanced Indonesia, Towards a Golden Indonesia 2045” in the 2024 Presidential Election. To achieve this vision, there are 8 Asta Cita missions. Related with the economic sector, there are missions 2, 3, 5 and 6, namely:

• Mission 2: Strengthen the country’s defence and security system and encourage national independence through self-sufficiency in food, energy, water, creative economy, green economy and blue economy.
• Mission 3: Increase quality employment opportunities, encourage entrepreneurship, develop creative industries, and continue infrastructure development.
• Mission 5: Continue down streaming and industrialization to increase added value in the country.
• Mission 6: Building from the village and from below for economic equality and eradicating poverty

Prabowo Subianto also formulated 8 best quick results programs targeting achieving a Golden Indonesia 2045. One of the best fast results programs targeting the economic sector is establishing a State Revenue Agency and increasing the ratio of state revenues to gross domestic product (GDP) to 23 percent. Prabowo also proposed 17 priority programs that will be implemented to achieve the vision and mission. Several programs related to economic development as follows:

• Continuing downstream and industrialization based on natural resources, including in the maritime area to open up as many job opportunities as possible in realizing economic justice.
• Improving the state revenue system.
• Continuing economic equality, strengthening MSMEs, and development of the Indonesian Capital City (IKN).
• Preserving cultural arts, increasing the creative economy, and increasing sports achievements.

Analysis

All candidates prioritize economic equality achieved through reducing inequality, with several other policies such as increasing income and developing infrastructure to increase connectivity. Kebijakan di bidang investasi, yang merupakan pendorong perekonomian, juga telah dirumuskan masing-masing capres meskipun pada derajat yang berbeda. Policies in the investment sector, which is a driver of the economy, have also been formulated by each presidential candidate, although to different degrees.

Anies Baswedan has an agenda in mission 2, namely economic equality. Some of the strategies that will be implemented are implementing various combinations to reduce inequality with a Gini coefficient target of 0.37 in 2029. This target will be achieved by combining several policies. The growth target set by Anies Baswedan is 5.5 – 6.5% per year.

To encourage economic equality, Anies Baswedan plans to create leading cities as growth centers and can increase the growth of the surrounding area. This means that the concept brought is the growth pole by looking at cities that have economic advantages compared to rural areas. The equalization policy will also be realized through infrastructure improvements in disadvantaged areas.

Regarding investment, Anies Baswedan prioritizes improving the business climate. The improvement policy is mainly on the Doing Business indicators published by the World Bank. Regarding state revenues, Anies Baswedan plans to create an agency to manage state revenues

Presidential candidate Ganjar Pranowo proposed a growth target of 7% per year. Meanwhile, there is no specific discussion regarding efforts to overcome inequality. To equalize development and the economy, Ganjar Pranowo makes villages the main basis for equality or can be said to be village centric, where villages grow together with cities.

Regarding investment and the business world, Ganjar Pranowo chose to develop MSMEs and encourage them to become world class. This strategy is expected to be a way to open new job opportunities. With the increase in MSMEs, more workers will be needed.

In efforts to manage state revenue, Ganjar’s policy is more or less the same as Anies Baswedan, namely forming a new state revenue agency. Tax policy was also not really mentioned by presidential candidate Ganjar, which is more or less the same as Anies Baswedan and Prabowo Subianto.

In the economic sector, Prabowo Subianto also carries out a priority development program for villages. However, the economic programs have a more “continuing” nuance than the previous government’s programs. There are not many new ideas regarding economics.

In the infrastructure sector, Prabowo Subianto prioritizes the development of node-based infrastructure such as ports and supports, such as agriculture. This development pattern aims to strengthen connectivity between production centers and marketing centers.

What economic outcomes, challenges, and opportunities may result from their strategies?

Based on the mission and strategic policies of each presidential candidate, it can be said that the economy is still the main topic in the vision and mission for the next 5 years. Equity is the keyword that emerged from the programs of the three presidential candidates. Regarding this, the presidential candidates have realized that the current paradigm no longer prioritizes high growth, but equality.

State revenue is one of the important pillars of economic equality, apart from of course investment. The presidential candidates are promoting a policy of establishing a special agency or institution to manage state revenues. Actually, this policy does not need to be implemented because there is already a Directorate General of Taxes which manages state revenues. The formation of this Special Agency will be inefficient because of the new institutional structure that must be created along with supporting regulations.

Infrastructure development also remains a challenge, especially for infrastructure supporting New Renewable Energy (EBT). For this, quite large investments are needed, both from within and outside the country. For this reason, ease of doing business is needed, not only from investment-friendly regulations, but also optimization of RBA OSS as a licensing service system. Apart from that, incentive policies for investment are also still needed.