The Economy in the SBY VS Jokowi Era is Very Unequal, Here’s the Cause!

• The development of the era and technology has changed the role of the business field in the structure of Indonesia’s Gross Domestic Product (GDP).
• The growth of the processing industry as well as the agricultural, plantation and fishery sectors slumped during President Jokowi’s era

• The sluggish growth of the manufacturing industry has had a major impact on the GDP structure, with the addition of workers continuing to fall
  

Jakarta, CNBC Indonesia – The growth of the processing industry as well as the agricultural, plantation and fishery sectors continued to decline under President Joko Widodo (Jokowi).

Referring to the Central Statistics Agency (BPS), the average growth of the processing industry during President Jokowi’s era (2015-2022) reached 3.3%. The manufacturing industry’s contribution to the formation of GDP during this period reached 19.84%.

For the record, the 2015-2022 period is the period in which President Jokowi rules in full. In 2014, Jokowi only led Indonesia for a little over three months after being sworn in in October 2014.

The industries that grew the fastest during the Jokowi era were food and beverage (6.3%), the chemical, pharmaceutical and traditional medicine industries (5.6%), and the machinery and equipment industry (4.5%).

The chemical, pharmaceutical and traditional medicine industries had grown by over 9% in 2020 and 2021 after the Covid-19 pandemic hit Indonesia.

The agriculture, forestry and fisheries sectors grew by an average of 3.1% in 2015-2022. The highest growth was in fisheries, which was 4.8%, followed by livestock with 3.8%. The sector’s contribution to the GDP structure in the 2015-2022 period reached 13.13%.

As a comparison, the average growth of the manufacturing industry in the first eight years of President Susilo Bambang Yudhoyono (SBY) (2005-2013) reached 4.5%.

The highest growth was in the transportation equipment, machinery and equipment sector, namely 7.6%, followed by food, beverages and tobacco, namely 5.5%.

High growth also has a major impact on the manufacturing industry’s contribution to the GDP structure. In the 2005-2012 period, the manufacturing industry’s contribution to national GDP reached 26.2%.

During the SBY era, the agriculture, livestock and forestry sectors grew by an average of 3.6%. Contribution to GDP reached 14.3%.

Interestingly, the growth of the textile and apparel industry or the leather, leather goods and footwear industry was actually higher during the Jokowi era, namely in the range of 2.4-3.9%. In contrast, during the era of President SBY it was only 1.2%.