Indonesian President Joko Widodo Thursday ordered authorities agencies to remove two ranks of public servants next year and replace their positions with artificial intelligence, in a bid to cut red tape hampering funding.
Widodo made the announcement in a room full of leaders of prominent firms as he laid out a second-term agenda aimed at modifying the structure of Southeast Asia’s largest economy by reducing its dependence on natural resources.
The president, whose new five-year term started last month after winning an election in April, said Indonesia ought to transition to higher-end manufacturing, such as EVs and use raw supplies like coal and bauxite in such sectors, not just exports.
Such transformation would require foreign funding, and Widodo stated he would enhance the business climate by fixing dozens of overlapping guidelines and cutting red tape.
To scale back bureaucracy, Widodo said the current prime four tiers in government divisions would be grounded to two next year. Widodo didn’t provide further particulars, including any guidance on which specific roles can be removed or how the know-how would be used.
The government will hand over to parliament a bill on tax reforms in December and another bill addressing labor points, Widodo stated, a timeline Finance Minister Sri Mulyani Indrawati made public Wednesday.
Political parties in Widodo’s ruling alliance control 74% of the seats in parliament, making it easy for his government to push through laws.
Widodo reemphasized the government’s promise that Indonesia’s economy would grow 5.04%-5.05% this year, slower than its 5.3% goal, amid a global economic slowdown.