The new government needs to overcome it through cross-sectoral populist economic policies.
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Poverty, price stability and employment are considered a national problem. The new government needs to overcome it through cross-sectoral populist economic policies.
JAKARTA, KOMPAS — The people\'s economy is one sector that needs to get more attention from the government in the 2019-2024 period. Apart from the fact that a number of issues in the sector are perceived by the community as a national problem, this is also inseparable from the shadow of the global economic crisis that could affect Indonesia. Handling the economic sector requires a holistic approach because the problems being faced are often cross-sectoral.
The Kompas R&D survey on 19 September-4 October 2019 involving 1,200 respondents in 34 provinces showed three of the four issues that the community considered the most crucial for the nation\'s problems related to the economic sector. The three issues are price stability (26.5 percent), employment (8.6 percent) and poverty (8.2 percent).
These three problems cannot only be the responsibility of ministers in the economy because they are cross-sectoral and have broad dimensions, not only economics.
The three problems, according to the Head of the Center for Population and Public Policy Studies at Gadjah Mada University, Yogyakarta, Agus Heruanto, when contacted from Jakarta, Friday (18/10/2019), must be approached with a holistic perspective. According to him, the three issues are populist economic issues whose resolution does not only involve the minister of economics, but also other fields.
"These three problems cannot only be the responsibility of ministers in the economy because they are cross-sectoral and have broad dimensions, not only economics," Agus said.
The issue of poverty, for example, cannot be viewed only from an economic perspective but there are factors of education, culture, geographical conditions and even politics. Likewise, the issue of employment is not solely the responsibility of the manpower minister, but also the responsibility of the minister of education, the minister of trade, and the minister of economics in general.
"People\'s economic issues are not only the responsibility of the minister of economics because they are multidimensional in nature. Therefore, all ministers must have an understanding of these issues which are no longer economic issues, but are national issues," Agus said.
The level of satisfaction
The Kompas survey in October 2019 also showed that the community was least satisfied with the government\'s performance on three issues in the economic sector, namely controlling the rupiah exchange rate (39.5 percent expressed satisfaction), providing employment (41.2 percent), and controlling the prices of goods and services (44.3 percent).
The Indonesian economy can continue to grow steadily amid global economic uncertainty due to crises in a number of countries and the trade war between China and the United States.
Nevertheless, Presidential Chief of Staff Moeldoko yesterday said that the economic performance of the five-year administration of President Joko Widodo and Vice President Jusuf Kalla was relatively good. The Indonesian economy can continue to grow steadily amid global economic uncertainty due to crises in a number of countries and the trade war between China and the United States.
He even said that Indonesia\'s economy grew with a decrease in poverty, inequality, unemployment and inflation. During the five years of the Jokowi-Kalla administration, the poverty rate has fallen below 10 percent and the unemployment rate has fallen to 5.01 percent, while the inflation rate can be maintained on average at 3.2 percent per year.
However, he realized the work was not completely finished. The government still needs to improve infrastructure, human resources, and regulations and bureaucratic reform so that investment grows and jobs are created.
Meanwhile, related to Indonesia\'s economic challenges in the future, Indonesia\'s Vice President-elect for the 2019-2024 term, Ma\'ruf Amin, in a special interview with Kompas, said yesterday, the government would implement a policy of community economic empowerment. This is aimed at increasing capacity of the people\'s economy, narrowing the gap, and creating jobs.
The policy will be carried out by collaborating with various stakeholders. For example, Ma\'ruf Amin said, when he was still the General chairman of the Indonesian Ulema Council, he had proposed the redistribution of assets to communities from government-owned lands or conglomerates that were not utilized.
There are two parties that must be involved, the private sectors and state-owned enterprises (SOEs).
"Therefore, the community has access to land. However, land alone is not enough. There are investors entering into partnerships. Farmers do not only take agricultural products, but also (share the results) from cultivation results. There are two parties that must be involved, the private sectors and state-owned enterprises (SOEs)," he said.
Cabinet affects investors
The composition of the government Cabinet for the 2019-2024 period in the economic field is seen as affecting the response from the market and investors. Moreover, according to the executive director of the Institute for Development of Economics and Finance, Enny Sri Hartati, the government will face a tough task, especially due to the shadow of the global economic crisis.
"The entry of investment will increase productivity, and from the manufacturing side, it will create jobs. Employment will provide income to the community so that purchasing power increases. In the end household consumption will rise and trigger economic growth," she said.
According to Enny, in attracting investment, the thing to consider is the existence of trust in the business world and the economic ecosystem in the country. Thus, the cabinet posture for the 2019-2024 period has significant relevance to determine investor confidence in the Indonesian business world. ( REK/AGE/ NTA/ LAS/ INA)