May 16, 2026<\/p>\n
16:55 WIB<\/p>\n
Economist: Deregulation Task Force is the Solution to Stagnant 5%\nEconomic Growth<\/p>\n
The economist emphasized the need for bureaucratic reform and\nderegulation to encourage foreign investment and maximize exports in\norder to achieve high economic growth for Indonesia, similar to East\nAsian countries.<\/p>\n
Finance Minister Purbaya Yudhi Sadewa led a meeting on the\ndebottlenecking report, Jakarta, Thursday (7\/5). Instagram\/@MenkeuRI<\/span><\/p>\n JAKARTA - Rector of Paramadina University, Didik J Rachbini, believes\nthat the idea of forming a Deregulation Task Force is logical to lift\nIndonesia out of its economic stagnation at 5%. According to him, East\nAsian countries that have successfully implemented industrialization\nused a \u2018war room\u2019 for bureaucratic reform directly controlled by the\nhighest political leader.<\/p>\n For example, Vietnam, through the \u0110\u1ed5i M\u1edbi reforms, has succeeded in\nmaintaining economic growth up to 8%. Indonesia achieved this in the\nlate 1980s and early 1990s, resulting in economic growth of up to\n7%.<\/p>\n \u201cAll developed countries have done this, such as South Korea during\nits industrialization era, Singapore under Lee Kuan Yew, and China\nduring the Deng Xiao Ping era. Without bureaucratic reform and\ninstitutional improvement, it is impossible for industry and the economy\nto grow rapidly,\u201d he explained in a written statement, Jakarta, Saturday\n(16\/5).<\/p>\n \u201cIf we want to escape the curse of 5% economic growth, then there\nmust be policies to achieve maximum export performance to drive high\nindustrial growth,\u201d said the Senior Economist at Indef.<\/p>\n He regretted that the national industry, which should be the\nlocomotive of the economy, is currently growing slowly and cannot be\nrelied upon to boost economic growth. Therefore, a conducive business\nclimate is needed so that foreign investment comes in and export\nperformance grows rapidly as a sign that Indonesian products are\ncompetitive and successful in the international market.<\/p>\n \u201cRelatively compared to other countries, we are far behind.\nMeanwhile, foreign investment in Vietnam reached 4.2%; Malaysia 3.7%;\nand Singapore 27.8%,\u201d he said.<\/p>\n He even emphasized that Indonesia\u2019s export performance is far behind\nVietnam as a new economic engine in Southeast Asia. Vietnam\u2019s\ninternational trade has grown very rapidly to US$1000 billion, or twice\nthe value of Indonesia\u2019s international trade.<\/p>\n \u201cThat is why Vietnam\u2019s economy can grow up to 8% in 2025. As long as\nexport performance and foreign investment are sluggish, don\u2019t expect us\nto escape the curse of 5% growth,\u201d he said.<\/p>\n Furthermore, he also highlighted the issue of bureaucracy and\nregulations, which President Prabowo has also complained about as\nhindering many businesses, as a major economic problem. For comparison,\nit takes up to two years to process investment permits in Indonesia,\nwhile in other countries it can be completed in just two weeks.<\/p>\n \u201cComplicated regulations are considered to create opportunities for\nunhealthy practices in the bureaucracy. Therefore, the President plans\nto form a special deregulation task force to cut rules and permits that\nare deemed to hinder investment and business activities in Indonesia,\u201d\nhe said.<\/p>\n \u201cBut it won\u2019t be easy, because the current conditions are more\ndifficult than in the 1980s because the economic structure is more\ncomplex, the bureaucracy is larger, vested interests are greater, and\nthe global landscape has changed,\u201d he added.<\/p>\n \u201cDeregulation and debureaucratization are for accelerating domestic\nand foreign investment, new industrialization, competitiveness in\npenetrating international markets, and job creation. This policy must be\ncarried out with strong governance to avoid the risk of repeating old\npatterns of rapid but fragile and oligarchic growth,\u201d he concluded.<\/p>",
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