By: Ahsan Zoelfa *)
Jakarta, CIDISS – Jokowi-JK administration’s policy in the field of economic sector received harsh criticism from the public due to Indonesia’s foreign debt that continues to grow over time. As the World Bank report on 2nd of December 2015 states that the government has received Rp510,4 trillion from the issuance of securities and 3.89 billion dollars (around Rp53 trillion) of official foreign loans. In other words, government debt increased by about Rp563 T. According to Vice Chairman of Commission VI of the House of Representatives Heri Gunawan, the debt make Jokowi-JK administration became a “record scorer” for the highest amount of debt along the Indonesian government.
Jokowi-JK administration also received harsh criticism from the public regarding to the policy to increase the debt at least Rp605,3 trillion in 2016. Observers from the Association of Indonesian Political Economy (AEPI) Dani Setiawan said that the government’s policy to increase the debt tends to deny the spirit of Nawacita which has been inflamed. Government’s policies that continue to increase the debt is feared will make the Indonesian economy increasingly unhealthy. If the debt continues to grow, the economic policies will tend to become such an exploitative policies. This phenomenon will be real because the economic policy that is made will be directed only in an effort to pay its obligations and pay off the debt.
Then, is it a bad omen for Indonesia? The answer could be yes or no, depending on how governments manage the debt. The foreign debt that always increased could be disastrous for the nation, when the government is careless to allocate the debt for things that are consumptive and futile. For example, the provision of fuel subsidies that are not targeted. Or even the debt funds lost in vain swallowed by the “beasts” that is called “corruptor”. If the government make a little sloppy in allocating the debt, there will be a great shock in Indonesian economy.
Otherwise, the foreign debt that has been increased can be a good sign for Indonesia, if the government uses it to things that are productive. For example, foreign debt funds were used for infrastructure development. Reflecting on the fact, it seems that Jokowi-JK administration looks pretty good in managing the existing foreign debt. In accordance with the jargon “Nawacita”, Jokowi-JK administration continues to boost infrastructure development in all corners of Indonesia by using existing funds, including funds of foreign debt. If Jokowi-JK administration consistent with these efforts, the creation of economic activities that bring prosperity for all Indonesian people will not be a dream anymore.
However, Jokowi-JK administration still has a long path. Related to this, as the people of Indonesia that are intelligent and critical, we do not need a protracted lament government policies that still continue to increasing the debt. What we need to do is keep an eye on that allocation of the funds. We should avoid that the debt become worthless, or maybe become “such a delicious cuisine” for corruptor. [AZ]
*) Jakarta Contributor