Three Years of Jokowi's Administration: Economic Growth Around 5%

Almost three years since Joko Widodo (Jokowi) and Jusuf Kalla (JK) were inaugurated as President and Vice President on October 20, 2014, Indonesia's economy has been fairly stable, hovering around 5 percent. In 2014, domestic economic growth fell below five percent due to the increase in subsidized fuel prices (BBM) at the beginning of Jokowi's administration. However, it returned to above 5 percent the following year. While the revised state budget (APBNP) targets 5.2 percent growth by the end of this year, the first half only reached 5.01 percent.

Inflation during the three years of the Jokowi-JK administration has been relatively stable, ranging from 3-4 percent. In 2014, inflation reached 8.36 percent, but fell to 3.35 percent in 2015, 3.02 percent in 2016, and 3.72 percent in 2017 (up to September). The government's price control policies have successfully managed inflation.

Meanwhile, interest rates during the Jokowi-JK administration have shown a downward trend. The Bank Indonesia (BI) benchmark interest rate (BI Rate) was still at 7.75 percent in 2015, but by September 2017, the BI 7-day Rate had fallen to 4.25 percent.