Former Commissioner at State energy company Pertamina, Basuki “Ahok” Tjahaja Purnama, has urged the government to focus on fiscal discipline and comprehensive reforms in the tax and customs sectors to accelerate national economic growth.

“Those two sectors, if not handled properly, will make it difficult for investors to enter,” Ahok said during a session of Wealth Wisdom 2025 organized by Permata Bank on Tuesday, October 7, 2025.

Ahok, who previously served as a legislator in the House of Representatives, noted that nearly all countries today face challenges in sustaining economic growth − even developed economies grappling with unemployment. The difference, he said, lies in how those nations create space for businesses, particularly in the manufacturing sector, through simplified licensing and pro-business policies.

In contrast, Indonesia still faces multiple structural barriers, requiring extra effort to boost growth. Ahok expressed hope that the implementation of Presidential Regulation No. 28/2025 on risk-based business licensing would run effectively to encourage more investment.

During the same event, Ahok outlined three key recommendations to make Indonesia’s economy more competitive:

1. Rebuild public and investor trust.

Ahok emphasized that transparency in budget management and taxation is vital. He criticized ongoing cases of extortion by rogue tax officials and weak customs oversight.

“Budgets must be transparent, taxes must be transparent. Don’t let businesspeople be chased by tax officers who extort them,” he said.

2. Improve the government’s procurement system.

He pointed out inefficiencies in the current procurement process due to price manipulation and poor tender management. Drawing from his experience as Jakarta governor, Ahok cited that procurement transparency improved significantly when his administration joined the National Public Procurement Agency (LKPP) directly.

3. Redesign subsidy policies to ensure proper targeting.

According to Ahok, subsidies on goods like fertilizers and LPG should be replaced with digital vouchers or cashback systems to minimize fraud.

“This method is more efficient and prevents abuse caused by price differences between subsidized and non-subsidized products,” he said.

Ahok further stressed that without a strong manufacturing base, Indonesia’s economy would struggle to reach the government’s 8 percent growth target. He warned that rampant smuggling has harmed domestic industries.

“Everyone just resorts to smuggling − it’s killing our manufacturing. Competing with China under those conditions is impossible,” he remarked.

He concluded by reiterating the need for comprehensive reforms: from tax and customs systems to procurement processes and subsidy schemes.

“If we handle all of this properly and manage our entry barriers wisely, I’m confident Indonesia can move forward,” Ahok said.