By : Indra Fajar Mahendra )*
During 2022 Indonesia’s economic development grew rapidly. These results need to get appreciation from many parties as a form of effort to build the Indonesian economy very strongly.
In 2022 Indonesia is still in a pandemic period but the government is working hard so that there are no negative effects, including in the economic field. Economic development continues to be carried out so that people survive during the pandemic. The economy must be maintained so that state finances do not falter.
Economist Andry Asmoro stated that Indonesia’s economic performance in 2022 was quite good even in the midst of global economic shocks and a pandemic. This can be seen from three indicators. First is inflation, then the trade balance and the fiscal balance.
Andry continued, after the fuel price adjustment, inflation is expected to rise by 7%. But in reality, inflation is only 5.5% and the prediction for next year is only 4%. This figure is very good because the average world inflation is 8% per year. In a sense, inflation in Indonesia is not too high and this is good because it can be kept to a minimum.
If inflation is not too high, it can even be minimized, it will have a positive impact on the economy. The people have no trouble shopping for groceries and other necessities because the price increases are not too high. They are aware that the price of an item, for example rice, must increase every year and the increase is only small (only 500-1000 rupiah per year).
The inflation rate that can be controlled, even below economists’ predictions, shows that the government’s economic development during 2022 is very good. In controlling finances so that a recession and severe inflation do not occur, the government provides various assistance to the community.
The first assistance given was BLT (direct cash assistance). Every underprivileged citizen gets assistance of Rp. 600,000 which is directly transferred to the account. Giving directly also reduces the possibility of extortion by unscrupulous persons. BLT was not only given once, but up to 4 times.
The government also created the Family Hope Program (PKH) which helps underprivileged families. The criterion is that there are pregnant women or school children in the house. Another requirement is that the family has members over 60 years old, or someone with a disability. To avoid giving double assistance, a permanent sign was written on the front of the house ‘PKH beneficiary’.
Apart from PKH, there is also capital assistance for MSME entrepreneurs worth IDR 2.4 million. This assistance is given to small and medium-sized businesses to increase business capital. Because most of them are trying hard to maintain their business in the midst of a pandemic shock. Capital assistance from the government is very valuable, because it has been proven to pay attention to MSMEs.
The new unemployed who lost their jobs due to the impact of the corona were also helped by the Pre-Employment Card. This program has been felt by many people. Because they not only receive financial assistance, but also training to improve their skills. This skill is good capital to open a business, so they are no longer unemployed.
With this assistance, it will become an economic stimulus. Where the people have money to buy rice and various other needs even though the price has risen somewhat. The economy is still awake because the market is dynamic and there are transactions every day. The circulation of money must be maintained because if there are no buyers, the wheels of the economy get stuck and are very dangerous.
Meanwhile, politician and economist, Rofik Hananto, stated that Indonesia’s economy has been quite stable over the past year despite being in the midst of an uncertain global situation. He praised President Jokowi’s leadership. However, he also advised the government to continue to maintain people’s purchasing power and pay more attention to the MSME sector (micro, small and medium enterprises).
The government is indeed prioritizing MSMEs as the backbone of the country’s economy, because 90% of businesses in Indonesia are MSMEs. Apart from providing a stimulus in the form of capital assistance, the government also maintains the performance of MSMEs by providing a legal umbrella, namely the Omnibus Law.
With the Omnibus Law, there is convenience for MSMEs, because they have clusters of ease of doing business. Then, the ease of doing business is done by granting business licenses which are easier and can be managed through an online single submission.
For the MSME business level, the permits needed are only the NIB (Business Identification Number), not the HO permit, which is expensive to administer. After having an NIB, MSME entrepreneurs take care of business and commercial or operational licenses, according to their respective fields.
With an NIB, it will be easier for MSMEs to gain trust from the Bank , because their business is considered valid. If there is a capital loan, the MSME business will develop more. Especially during a pandemic where small and medium-sized businesses fluctuated because people’s purchasing power decreased, they needed capital to open their shops again and survive bankruptcy.
Appreciation is given to the government because during 2022 the Indonesian economy has not slumped but has been more prosperous and the inflation rate is quite low. President Jokowi’s government has managed to survive even though there is still a pandemic and there is global economic instability due to conflicts in Eastern Europe. The government succeeded in keeping Indonesia’s economy stable and continuing to improve.
)* The author is a contributor to Nusantara Reading Room
