Author: Desmon S.)*
Unpredictable global economic situation and commodity prices that still tend to fluctuate have an impact on the performance of the Indonesian economy. Pressure on the economy is increasingly felt, as consumption and investment as the main engine of growth have not yet returned to its best performance.
In fact, consumption performance (purchasing power) that contributes more than 50 percent to GDP tends to slow, especially in the lower middle class.
That is why, in the last two years, Indonesia’s economic growth performance tends to be flat at the level of 5 percent. In fact, this year, the target of economic growth of 5.2 percent is difficult to achieve, if there is no policy breakthrough from the government, especially in stimulating purchasing power.
Indeed, compared to other countries, especially among the G-20 countries, Indonesia’s economic growth performance is quite good. Indonesia is only under China and India.
It should also be noted that not many countries can achieve growth at the level of 5 percent, especially in the middle of the world economic landscape that is going into a new normal era (new normal). Low growth has become a new normal condition in the next few years.
Even so, high economic growth still needed Indonesia. The reason, because Indonesia is in the era of demographic bonus (young and productive age), where the number of job seekers uterine bar into the labor market. The number is estimated at about 1.5 million-2 million people.
In fact, currently, every one percent of economic growth is estimated to only absorb a new workforce of about 250,000 people. That is, with an economic growth of about 5 percent, then quite a lot of these new job seekers are bouncing.
That is why, for economic growth to be driven higher, so that more jobs will be created, especially in the formal sector, large investments are needed, especially global investment, given the limited capacity of domestic savings to finance investment.
That is why, there is no other way to boost the competitiveness of the economy, in addition to accelerating infrastructure development followed by simplification of regulations and licensing. At least until 2017, there are 244 national strategic projects (PSN) spread from Sabang to Merauke with an investment of more than Rp 4,000 trillion. Some of the projects have been completed. And, this is the focus of work Jokowi-Kalla government in the last three years.
)* The author is CIDISS Contributor