- by: Rizal Arifin
Opposition criticism against the Government regarding the target of economic growth below 6 percent has become the spotlight. Macroeconomic statistics cannot be digested like exact science. Note that the economy is limited to assumptions. All economic propositions that have ever existed in the world always end with the adage “cateris paribus”. “All other things are equal” assuming that other things that are not measured in predictions are considered unchanged. There are social factors or future conditions of force majure cannot be measured by statistics and monetary values. This belief strengthened Adam Smith’s classic economic proposition which stated that there was an invisible hand in economic activities.
Economic growth below the 6 percent target is not a sin of the Government. The global economic situation that is slowing down and even backing has a significant impact on limiting the acceleration of national economic growth. Even financial institutions of the same caliber as the IMF and World Bank do not predict this condition. Revisions to most of their projects and targets have also been massive. Amid the shock of the global economy, the arrogance of the US Central Bank has also never stopped. Washington authorities save their currencies without considering international monetary equilibrium. Insane withdrawal of the US dollar with contractionary monetary policy using instruments to raise interest rates is carried out many times. Liquidity and currency pressures are unavoidable. In addition, a prolonged trade war between the US and China also affected the economy of their trading partner countries.
In the weakening global economic situation, growth of 5.17 percent is a good achievement and should be grateful. This condition does not discourage the Government from pursuing economic targets on other indicators. The Joko Widodo government has succeeded in harmonizing economic growth with a decrease in inequality. In the previous era, economic inequality increased even though the economy accelerated. This achievement is directly felt by the community to all groups. The main programs designed by the Government for equity which have a direct impact on the community have been well realized.
Completion of the three main economic problems, namely poverty, unemployment and inequality that have become priorities has been achieved well. The RAPS Program (Social Forestry Agrarian Reform), Village Funds, People’s Business Credit (KUR), Indonesia Smart Card (KIP), Healthy Indonesia Card (KIS), Family Hope Program (PKH), and Prosperous Rice (Rastra) run maximally and effectively . The massive development of infrastructure such as highways, highways, airports, ports, irrigation, reservoirs, railroads, power plants, and so on is a sacred commitment of the Government to think of long-term national interests for decades to come. That President Joko Widodo’s Government places the public interest above everything not only for the short term, but also for decades to come to be carefully thought out. Wise policy This Head of State deserves to be continued. Excessive infrastructure development in the eastern and rural areas deserves a thumbs up. The implication is not only providing for the needs but also carrying out the mandate of equal distribution of social justice and economic justice.
The state of the state budget is getting better. The Primary Financial Deficit Indicator (DKP) is used for measurement instruments. At the end of SBY’s administration, DKP reached Rp 142 trillion while in 2018 it ranged from Rp 60 trillion. In 2019 DKP is projected not to exceed Rp 20 trillion. The Primary Financial Deficit (DKP) is the difference in the shortfall in state revenues excluding debt to state expenditure. This means that fiscal independence is underway, all spending (excluding debt payments) can almost be covered by domestic revenues.
It can be believed that this country is still growing steadily in the midst of a world-wide slump. The impact is felt by the community and is measured by various economic indicators. There is no denying that the opposition’s criticism is only a terrorist effort to the motherland for their political rotten interests. National development and leadership must be continued towards the world lighthouse Indonesia.
The Author is social politic observer
