Indonesian president brands volatile price, graft, weak law enforcement as challenges

Food prices instability, graft, weak low enforcement are the main obstacles for Indonesia to revive economy, Indonesian President Joko Widodo said here on Friday.

The gap between the poor and rich is also challenging the country, the president, also known as Jokowi, said in an annual speech to lawmakers.

"The government admits that there are many problems hampering us. Until today, the instability of food prices persists, corruption exists and law enforcement is still weak," he said at the parliament building.

Jokowi, who came into office on Oct. 20, on Wednesday reshuffled four of his key economic ministers and the security chief minister, putting two respected technocrats at top of economic position.

"The shakeup of the working cabinet hat I have just done aims at boosting the performance of the government so that the economic acceleration can be materialized," he said.

Indonesia's economy has seen the slowest growth pace in 6 years in the first and the second quarters, with the rates of 4.71 percent and 4.67 percent respectively, the national statistic bureau has announced.

Jokowi has freed up funds for infrastructure development by cutting fuel subsidies and slashed spending budget for officials.

He also strived to simplify process of investment licensing, combat graft and conduct other reforms to lure foreign fund.

Jokowi has sets a target of above 7 percent GDP growth at the end of his five year term. Endi