Indonesia’s President Joko “Jokowi” Widodo has vowed for a quick “massive deregulation” on Wednesday in order to boost sentiment and revive investment as growth in Southeast Asia’s largest economy expands at the weakest pace since 2009 amid a plunge in commodity prices.
“We need to carry out massive deregulation and introduce new regulations that will really create a good climate for the economy as soon as possible. We are racing against time,” Widodo said in a cabinet meeting, adding that there were 110 regulations that have already been flagged as being negative for investors.
“I hope this week…we can completely review these, which ones we can cut, which ones need to be processed and which ones need further study,” he said.
Indonesia’s economic growth rose 4.67 percent year-over-year in the second quarter of 2015, far below Widodo’s target of at least 7 percent growth during his term.
Widodo recently revamped his cabinet by replacing six ministers with experienced technocrats in an effort to boost the economy.
Indonesia’s currency — the rupiah — has come under significant pressure amid a rout in emerging markets as growth concerns in China, regional devaluations, low oil prices, and a likely interest rate hike by the U.S. Fed, have panicked investors and sparked a selloff which has driven the currency to a 17-year low.