Ada Pertanyaan? Hubungi Kami 
Ada Pertanyaan? Hubungi Kami Fitri Novia Heriani, Andin Aditya Rahman
The current consensus view among experts is that the current condition of Indonesian economy is fragile due to pressure from various factors. According to Ahmad Erani Yustika, Director of the Institute for Development of Economics and Finance, the primary cause is clogging in the State Budget. Disbursements under the State Budget, Erani says, have only reached 45 percent despite being near the end of 2013 fiscal year.
“The State Budget is an old song. Capital expenditure is only at 45 percent when we hoped there would be a push for economic development especially for infrastructure,” stated Erani in Jakarta last Tuesday.
Erani highlighted the issues that he believes need to be addressed by the Government. Firstly, the Government must fix Indonesia’s industrialization, which has continued to fail to be executed accordingly to plan over the past six years.
Secondly, the government is must find a solution to Indonesia’s current account deficit problem rather than focusing on deficits in the oil and gas sector.
Finally, a lack of infrastructure is the main factor deterring Indonesia’s economic growth. While Indonesia has a plan for infrastructure development under the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), there has been no significant progress in this sector.
Banking expert Ryan Kiryanto, on the other hand, points out another problem contributing to Indonesia’s slow economic growth. According to Ryan, the current approaches being implemented by Bank Indonesia are excessively biased towards stabilizing economic growth in response to the high inflation being caused by the high oil imports.
“Every day we import USD 160 million which is putting pressure on the IDR so that it can’t get stronger,” emphasized Ryan.
These circumstances, concluded Ryan, prove that Indonesia’s fundamental economy is fragile.
(hot/kc)
Fitri Novia Heriani, Andin Aditya Rahman
The current consensus view among experts is that the current condition of Indonesian economy is fragile due to pressure from various factors. According to Ahmad Erani Yustika, Director of the Institute for Development of Economics and Finance, the primary cause is clogging in the State Budget. Disbursements under the State Budget, Erani says, have only reached 45 percent despite being near the end of 2013 fiscal year.
“The State Budget is an old song. Capital expenditure is only at 45 percent when we hoped there would be a push for economic development especially for infrastructure,” stated Erani in Jakarta last Tuesday.
Erani highlighted the issues that he believes need to be addressed by the Government. Firstly, the Government must fix Indonesia’s industrialization, which has continued to fail to be executed accordingly to plan over the past six years.
Secondly, the government is must find a solution to Indonesia’s current account deficit problem rather than focusing on deficits in the oil and gas sector.
Finally, a lack of infrastructure is the main factor deterring Indonesia’s economic growth. While Indonesia has a plan for infrastructure development under the Masterplan for Acceleration and Expansion of Indonesia’s Economic Development (MP3EI), there has been no significant progress in this sector.
Banking expert Ryan Kiryanto, on the other hand, points out another problem contributing to Indonesia’s slow economic growth. According to Ryan, the current approaches being implemented by Bank Indonesia are excessively biased towards stabilizing economic growth in response to the high inflation being caused by the high oil imports.
“Every day we import USD 160 million which is putting pressure on the IDR so that it can’t get stronger,” emphasized Ryan.
These circumstances, concluded Ryan, prove that Indonesia’s fundamental economy is fragile.
(hot/kc)