{
    "success": true,
    "data": {
        "id": 1985926,
        "msgid": "how-risk-taking-could-result-in-higher-growth-for-indonesia-1789648038",
        "date": "2026-09-17 18:11:13",
        "title": "How Risk-Taking Could Result in Higher Growth for Indonesia",
        "author": "",
        "source": "TEMPO_EN",
        "tags": "",
        "topic": "Economy",
        "summary": "The Institute for Economic and Social Research (LPEM UI) has called for a reform of Indonesia's financial governance to move away from an overly rigid paradigm. Director Chaikal Nuryakin argues that current fear of criminal charges regarding state losses prevents the risk-taking necessary to achieve economic growth targets of 8 per cent.",
        "content": "<p>How Risk-Taking Could Result in Higher Growth for Indonesia<\/p>\n<p>Reporter<\/p>\n<p>September 17, 2026 | 06:11 pm<\/p>\n<p>TEMPO.CO, Jakarta - The Institute for Economic and Social Research,\nFaculty of Economics and Business, University of Indonesia (LPEM UI),\nbelieves financial governance reform is necessary to give the government\nroom to take risks in pursuit of higher economic growth.<\/p>\n<p>\u201cOur state financial governance, perhaps due to the 1997 economic\ncrisis, has been too rigid and too prudent. The result is that our\neconomy has grown steadily at 5 percent,\u201d said LPEM UI Director Chaikal\nNuryakin, during a parliamentary meeting with the State Financial Bill\nworking committee on Thursday, September 17, 2026.<\/p>\n<p>Chaikal made the statement while advising the State Financial Bill\ndiscussion with lawmakers. According to Chaikal, current financial\ngovernance is rigid because it is oriented towards a \u201cstraitjacket\u201d\nparadigm rather than a \u201cspringboard,\u201d meaning the state has strict\nfiscal control while avoiding mistakes, including losses.<\/p>\n<p>This paradigm has led policymakers, including directors of\nstate-owned enterprises (SOEs), to avoid risks for fear of criminal\ncharges due to decisions that trigger losses.<\/p>\n<p>However, Chaikal believed that losses resulting from a policy or\ndecision do not necessarily indicate wrongdoing or unlawful acts.\nTherefore, Chaikal urged criminal investigations be directed more\ntowards assessing the extent to which the decision-making process was\ncarried out in good faith, with prudence, and in accordance with\nprocedures.<\/p>\n<p>\u201cFocusing on state losses is inappropriate, because it\u2019s possible for\nthe state to still profit despite corrupt practices,\u201d Chaikal\nstated.<\/p>\n<p>He argued that focusing on state losses while limiting freedom of\nmovement undermines the state\u2019s goal of maximizing economic and social\nvalue.<\/p>\n<p>Nevertheless, Chaikal emphasized that efforts to improve financial\ngovernance shall not weaken the fight to eradicate corruption, but\nrather shift the focus toward decision-making procedures instead of\nmaking profit and loss the primary indicator.<\/p>\n<p>For Chaikal, it is impossible to achieve 8 percent economic growth if\nthe state limits innovation and risk in order to minimize losses. He\ninstead urged for state financial governance to work towards creating\neconomic and social benefits.<\/p>\n<p>Read: Bakom Optimistic Suahasil Nazara Can Sustain Indonesia\u2019s\nEconomic Growth<\/p>\n<p>Click here to get the latest news updates from Tempo on Google\nNews<\/p>",
        "url": "https:\/\/jawawa.id\/newsitem\/how-risk-taking-could-result-in-higher-growth-for-indonesia-1789648038",
        "image": ""
    },
    "sponsor": "Okusi Associates",
    "sponsor_url": "https:\/\/okusiassociates.com"
}