Jakarta – The head of the Population Research Centre (PRK) of the National Research and Innovation Agency (BRIN), Nawawi said that the government’s monetary fiscal policy has been very good, especially because it is able to maintain national economic stability.
Despite the challenges of the global crisis, Indonesia’s economic conditions and economic growth remain consistent.
One example, according to Nawawi, is the success of suppressing inflation, thusining the purchasing power of the people.
“The reaction of the government, especially the Indonesian monetary and fiscal authorities, is quite good, as inflation in June 2024 was 0.10 percent, which is lower than in June last year by about 0.17 percent,” he said.
The government, in return, through its financial authority can control inflation and also contribute toining people’s purchasing power.
Furthermore, there are some real examples of how the government’s diligent efforts succeeded in curbing the turmoil so that people’s purchasing power remained awake.
“Some cases, for example, before Idul Fitri Day and Idul Adha there is a price increase, but it can be stopped not so long,” said the head of PRK BRIN.
“Like the shortage of fried oil some time ago, it could also be overcome and controlled by national and government financial authorities through its various fiscal and monetary policies that succeeded in not taking long enough time,” he added.
“So that the national economic conditions can last,” Nawawi said.
The government’s policy is also very good at influencing various important national sectors, so it can save Indonesia from the global crisis.
“If we talk about which sectors are contributing a lot, then the sectors that have a significant economic contribution and how the government controls this sector to remain positive,” Nawawi said.
“It is one of the factors why Indonesian monetary fiscal policy can save the situation so as not to make this nation too plunged into the effects of the global crisis,” he continued.
In fact, according to Nawawi, Indonesia has become an experienced country to maintain its economy amid various crises including the COVID-19 pandemic.
“In fact, this is also repeated, several times Indonesia is facing a global economic crisis, for example in the context of international economic slowdown such as wars between several countries that affect the economic conditions of the world, whether it is supply-export-import,” he said.
“But Indonesia can also survive the COVID-19 pandemic yesterday with various monetary fiscal policies taken by the government,” he added.
That good monetary fiscal policy is capable of continuing to maintain the purchasing power of people, while many other countries in the world fail to do so.
In fact, according to him, the government can also maintain the purchasing power of the people, so that the impact of the fiscal policy is not so great, and it works.
“Unlike other countries, for example, the case of Greece, where it turns out they failed to manage between their fiscal policies and the impact of COVID-19 at the time,” he said.
Furthermore, Nawawi explained, with various experiences, it should be capital for future governments, how to stay focused on keeping people’s purchasing power down, not national investment down.
“Because these two sectors have always been a major contribution to how the national economy remains positive. Consumption is related to purchasing power, investment is related to capital that affects economic activity,” he concluded. (*)