Jakarta (ANTARA) - Great Institute researcher Yossi Martino has urged\nthe government to maintain its fiscal, institutional, and macroeconomic\ncredibility amid intense pressure on the current economy.<\/p>\n
\u201cThe government needs to maintain three credibilities at once. First,\nfiscal credibility, which is ensuring major programmes have clear\npriorities, financing sources, and risk limits,\u201d he said in a statement\nin Jakarta on Thursday.<\/p>\n
Second, the government is also being asked to maintain institutional\ncredibility by ensuring strategic programmes have governance,\nperformance indicators, evaluation, and open oversight. As carried out\nwith the MBG programme, the government must continue to strengthen the\ngovernance of the Koperasi Merah Putih through adequate supervision,\nreporting, and accountability systems.<\/p>\n
\u201cVarious doubts that have developed in society regarding programme\ngovernance, including allegations of budget mismanagement, need to be\nclarified immediately through independent, transparent, and fact-based\ninvestigations,\u201d he said. He stated that transparency of investigation\nresults by authorised institutions is a crucial prerequisite to\nstrengthening institutional credibility and maintaining public trust in\nthe programme.<\/p>\n
Third, the government also needs to maintain macroeconomic\ncredibility by safeguarding Bank Indonesia\u2019s independence, rupiah\nstability, and fiscal-monetary coordination without blurring the\nresponsibilities of each authority. \u201cBI\u2019s independence must be upheld\nnot to please the market, but to protect the people\u2019s purchasing power.\nFiscal discipline also does not mean rejecting people\u2019s programmes, but\nrather ensuring people\u2019s programmes can be financed sustainably.\nBusiness certainty does not mean handing the economy over to\ncorporations, but creating an environment where investment, production,\nexports, and job creation can proceed with measured risk,\u201d he said.<\/p>\n
Yossi assessed that the government is currently transforming the\neconomic order from one previously heavily reliant on orthodox\nmacroeconomic stability and market-driven mechanisms, towards a\ndevelopmental state model that is more state-driven. The market turmoil\ncurrently occurring is essentially a phenomenon that can be read through\nthe lens of Institutional Change Theory. Referring to structural\npolitical-economic thought, every transformation effort\u2014such as\noverhauling the trade system\u2019s rules of the game through Danantara or\nrestoring the state\u2019s role in wealth distribution through the Free\nNutritious Meals (MBG) programme\u2014tends to disrupt the old equilibrium\nand trigger friction.<\/p>\n
\u201cWhat the market is testing today is not the good intentions of these\nsocial changes, but whether this transition period is managed with\ncertainty. When the market begins to doubt the fiscal direction or the\ngovernance of strategic programmes, the economic cost will return to\nsociety through a weaker rupiah, higher interest rates, and narrower\nfiscal space,\u201d he said.<\/p>\n
Responding to this dilemma, Yossi stressed the importance of applying\nthe principles of Pancasila economics into modern economic policy.\nQuoting the perspectives of Bung Hatta and Professor Mubyarto, he\nexplained that the state is obliged to be present when market mechanisms\nfail to produce social justice. He said Pancasila economics is not an\nanti-market economy, but also not an economy that hands the direction of\ndevelopment entirely over to the market. The market, he continued, must\nbe positioned as a resource allocation mechanism, while the ultimate\ngoal remains the welfare of the people.<\/p>\n
\u201cHuman resource investment through MBG, for instance, is a\nconstitutional mandate. However, this programme must be guarded against\nwastefulness. MBG must be based on the priorities of stunting-prone\nareas and involve local supply chains so that it becomes a driver of\nregional economies, not merely consumer spending,\u201d he explained.<\/p>\n
Yossi also noted that Pancasila economics must not be reduced to a\nmere slogan. Its measure of success lies in its ability to generate\ninclusive growth, maintain economic stability, and expand public\nwelfare.<\/p>\n
\u201cUltimately, the quality of implementation that is free from\ncorruption, accountable, transparent, and compliant with the law will be\nfar more decisive for the direction of the Indonesian economy going\nforward,\u201d said Yossi.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/government-urged-to-uphold-credibility-amid-economic-pressures-1781168498", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }