What is on the Political Agenda of Joko Widodo and Prabowo Subianto?

For the upcoming presidential election Jokowi has teamed up with Jusuf Kalla, while Subianto picked Hatta Rajasa as his running mate. Recent surveys indicate that the Jokowi-Kalla pair leads the popularity polls. However, some surveys indicate that the gap between both parties is narrowing. Moreover, the coalition of political parties that support the Subianto-Hatta pair is larger than the coalition that supports the Jokowi-Kalla pair (although this should not affect the upcoming election too much as the electorate chooses an individual instead of a political party). This has resulted in increased political uncertainty in Southeast Asia's largest economy.

Banking Sector

Jokowi-Kalla:

• Curb foreign influence in the domestic banking sector by limiting the purchase of shares of Indonesian banks by foreign investors.
• Implement rules that aim to avoid the overlap between the financial sector and the real sector. Currently various conglomerates hold large stakes in both sectors.
• Establish a Construction and Infrastructure Bank to support infrastructure development.
• Establish a Farmers' Bank to support farmers and boost agricultural output.

Subianto-Rajasa:

• Domestic banks/financial institutions should prioritize providing credit to farmers, fishermen, (traditional) workers, and small- and medium-sized industries.
• Establish a Farmers' and Fishers' Bank to boost the agriculture and fishery sectors.

Infrastructure

Jokowi-Kalla:

• Construct 2,000 kilometers of new roads, ten new harbours, ten new airports, ten new industrial zones as well as 5,000 new traditional markets. Furthermore, open science and techno parks in the regions. By reducing fuel subsidies (saving IDR 60 trillion) the pair wants to finance infrastructure development.
• Establishment of the aforementioned Construction and Infrastructure Bank to support infrastructure development.
• The government will construct special housing for workers in and around (new) industrial zones.

Subianto-Rajasa:

• Allocate IDR 1,400 trillion for infrastructure development through the MP3EI masterplan (2015-2019 track). Furthermore, establish 3,000 kilometers of new roads, 4,000 kilometers of new railway, as well as new airports and harbours.
• Construct 15 million new houses and 2000 new flats for the lower classes of Indonesia's society.

Agriculture

Jokowi-Kalla:

• Agrarian reform; distribute nine million hectares of land, open one million hectares of new rice fields outside Java and improve irrigation in three million hectares of rice fields.
• Become self-sufficient in agriculture, thus needing less imports.
• Establish the aforementioned Farmers' Bank to support farmers and boost agricultural output.

Subianto-Rajasa:

• Provide two million hectares of new farming land (which will absorb 12 million workers).
• Allocate IDR 10 trillion for research on farming and fishery.
• Establish the aforementioned Farmers' and Fishers' Bank to boost output.
• Become self-sufficient in agriculture.
• Transform 16 million hectares of destroyed forest into productive agricultural land (ten million hectares for biofuel and six million for food commodities), improve irrigation infrastructure for more than 1.16 million hectares, and open up two million hectares of new land for the production of rice, corn, soybeans, sugar cane and other crops.

Energy

Jokowi-Kalla:

• Revise the Oil & Gas law in order to improve the performance of this sector, support oil lifting, enhance the role of renewable power (particularly geothermal energy), limit consumption of oil (replacing it by gas in the transportation sector), increase the electrification rate to 100 percent, increase the number of domestic miners, renegotiate mining contracts in order to have a more equal profit share between the government and corporations (both domestic and foreign).
• Support the ban on mineral ore exports that was implemented in January 2014.

Subianto-Rajasa:

• Revise the Oil & Gas law; renegotiate mining contracts in order to make them more fair for Indonesia; when mining contracts between Indonesia and foreign parties expire, new contracts should be allocated to domestic companies; enhance the development of downstream industries as well as the role of geothermal energy.
• Indonesia must consider the use of nuclear power in the next 30 to 50 years.
• Support the ban on mineral ore exports that was implemented in January 2014.

Fuel Subsidies

Jokowi-Kalla:

• Cut the expensive fuel subsidies gradually over the next four to five years by increasing fuel prices by about IDR 1,500 per year. This will save IDR 60 trillion which will be spent on infrastructure development.

Subianto-Rajasa:

• Maintain the current fuel subsidies but make sure that the rich will not benefit from them (through the usage of new taxes for the rich that own cars), enhance the conversion program from fuel to gas and renewable energy.

General

Jokowi-Kalla:

• Ban outsourcing in government-owned companies.
• Improve laws that aim to protect workers.
• 12 years of free education for children.
• Enhance tax collection (to a tax ratio of 16 percent).
• Cut public debt.
• Curtail the poverty rate to 5-6 percent in 2019.
• Enhance a more efficient bureaucracy.

Subianto-Rajasa:

• Increase per capita income from IDR 35 million to IDR 60 million per year.
• Foster GDP growth of between 7 and 10 percent.
• Combat economic inequality by reducing the GINI ratio to 0.31 from 0.41 currently.
• Create two million new jobs per year.
• Increase wages for teachers.
• Allocate IDR 1 billion to each village.
• Increase the tax ratio to 16 percent.
• Lower public debt .
• Lower the budget deficit to one percent of GDP.
• 12 years of free education for children.

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