The Odyssey, Christopher Nolan\u2019s film, elevates Homer\u2019s classic epic\nregarding King Odysseus\u2019s journey home to Ithaca. During his long\nvoyage, he was beset by storms, lost, and faced various temptations that\nconstantly tested his direction and resolve.<\/p>\n
One of the greatest tests came from the Sirens\u2019 song, which could\nenchant and mislead sailors. To avoid surrendering to momentary\ntemptation, Odysseus had himself tied to the mast of the ship. He\ndeliberately limited himself so that the ship would continue moving\ntowards its destination.<\/p>\n
This tale is relevant to development. Moving does not always mean\ngetting closer to the goal; economic growth is not always synonymous\nwith prosperity. True progress is measured not only by how fast the\neconomy grows, but also by the extent to which that growth enhances\nsocietal welfare.<\/p>\n
Finding the direction towards prosperity<\/p>\n
Amidst global uncertainty, Indonesia remains optimistic. BPS\n(Statistics Indonesia) recorded economic growth of 5.29 per cent\nannually in the second quarter of 2026, while growth throughout the\nfirst half of 2026 reached 5.45 per cent. This achievement demonstrates\ndomestic economic resilience amidst a challenging strategic\nenvironment.<\/p>\n
Household consumption, which accounts for 53.32 per cent of GDP, grew\nby 5.06 per cent and contributed 2.67 per cent to economic growth. Gross\nFixed Capital Formation (PMTB) grew by 6.87 per cent with a contribution\nof 2.06 per cent, while government consumption increased by 15.97 per\ncent in line with the realisation of several strategic projects.\nAlthough the momentum was more moderate compared to the previous\nquarter, the composition shows that consumption and investment remain\nvital pillars of economic resilience.<\/p>\n
In terms of business sectors, the manufacturing industry was the\nlargest contributor to GDP with an 18.50 per\u2019cent share, growing 4.52\nper cent annually. This performance aligns with the increase in the\nBusiness Condition Index and Manufacturing Prospects to a level of\n52.31, indicating that manufacturing activity remains in the expansion\nzone. Growth momentum was also bolstered by the trade and construction\nsectors, which grew by 6.39 per cent and 6.68 per cent annually,\nrespectively.<\/p>\n
However, this development in business activities has not been fully\nfollowed by a strengthening of labour absorption. This is reflected in\nthe manufacturing labour index, which sits slightly below the threshold\nof optimism at 49.92. In May 2026, the number of employed persons\nreached 148.19 million, an increase of only 522,000 compared to February\n2026. This development shows that the expansion of business activities\nhas not yet been fully translated into the creation of new job\nopportunities on an adequate scale.<\/p>\n
Although the Open Unemployment Rate decreased to 4.65 per cent, the\nunderemployment rate was still recorded at 7.28 per decile, a slight\nincrease from February 2026. This condition indicates that labour market\nimprovements have not optimally addressed the adequacy of working hours\nand job quality. At the same time, the poverty line increased by 9.86\nper cent in a year to Rp669,235 per capita per month. Approximately\n74.70 per cent of this poverty line is derived from food\nrequirements.<\/p>\n
Thus, increasing prosperity cannot rely solely on an increasing\nnumber of employed people, but also requires more productive jobs and\nfood price stability so that rising incomes are not eroded by the\nincreasing cost of living.<\/p>\n
Maintaining prices, maintaining development goals<\/p>\n
The direction towards prosperity is determined by the ability to\nmaintain purchasing power. High inflation can suppress real income and\nis most heavily felt by vulnerable groups, as the largest portion of\ntheir expenditure is used for basic necessities.<\/p>\n
In July 2026, Indonesia experienced a monthly deflation of 0.14 per\ncent. Annual inflation fell from 3.34 per cent to 2.88 per cent,\nremaining within the target of 2.5\u00b11 per cent. Core inflation was\nrecorded at 2.76 per cent annually, while volatile food prices\nexperienced a monthly deflation of 1.68 per cent due to increased\nsupplies of shallots and chillies from production centres.<\/p>\n
This achievement was supported by the consistency of Bank Indonesia\u2019s\nmonetary policy and synergy in inflation control with the government\nthrough TPIP and TPID. The strengthening of food security and the\n\u2018Prosperous Food and Inflation Control Movement\u2019 also helped maintain\nsupply. Price stability does not arise from a single instrument, but\nfrom the coordinated management of demand, supply, distribution, and\nexpectations.<\/p>\n
Similar work is underway in East Priangan through the \u20184K\u2019 strategy:\naffordability, availability, smooth distribution, and effective\ncommunication. This strategy is reinforced through cheap food movements,\nmarket operations, inter-regional cooperation, and SINDANG PRIATIM, an\nartificial intelligence-based early warning system.<\/p>\n
In July 2026, Tasikmalaya City recorded a monthly deflation of 0.03\nper cent, with calendar year inflation at 1.22 per cent and annual\ninflation at 2.44 per cent. Decreases in the prices of chicken eggs,\nbird\u2019s eye chillies, oranges, and cooking oil helped mitigate pressure.\nThis development demonstrates the importance of maintaining supply while\ncarefully monitoring the sources of price changes.<\/p>\n
In general, both national and Tasikmalaya City inflation remained\ncontrolled and within the target range. Much like Odysseus finally\narriving in Ithaca, success is not determined by always calm seas, but\nby the ability to maintain direction amidst changing currents and\nwaves.<\/p>\n
Similarly, Bank Indonesia\u2019s consistency in maintaining price\nstability is a vital part of the journey towards development goals.\nBecause when prices remain controlled, purchasing power is preserved,\nvulnerable groups are protected, and economic growth can be translated\ninto more tangible prosperity for the people. That is where price\nstability finds its meaning: not merely maintaining inflation figures,\nbut ensuring that the journey of development remains directed towards a\nmore prosperous life.<\/p>", "url": "https:\/\/jawawa.id\/newsitem\/odysseus-and-the-journey-home-towards-prosperity-1788364707", "image": "" }, "sponsor": "Okusi Associates", "sponsor_url": "https:\/\/okusiassociates.com" }