The 8 Per Cent Economic Orchestra: Who Will Conduct It?

This article is an opinion piece, and all content and views are the personal views of the author and do not reflect the editorial stance.

WHEN the government targets 8 per cent economic growth, the public’s question is actually simple: who will drive such a large engine?

This question becomes relevant after Purbaya Yudhi Sadewa stated that the private sector will be the main pillar in pursuing Indonesia’s high growth.

This statement is realistic. Because in today’s Indonesian economic structure, the capacity of the State Budget (APBN) is actually limited.

The government’s consumption of Gross Domestic Product (GDP) is only around 6-7 per cent.

The problem is that 8 per cent growth is not just about increasing statistical figures.

It requires an ‘economic orchestra’ that works in unison. If one of the players falters, the entire tone of development could sound discordant. Indonesia is not short of economic players. What is often lacking is harmony.

For years, the public has too often hoped that the state would be the ‘economic superman’.

When the Rupiah weakens, the government is asked to intervene. When prices rise, the state is asked to resolve it.

When job opportunities are scarce, the government is considered the sole person responsible.

In fact, in the modern economy, the state is not the only player. The state is the conductor.

The state’s job is to maintain the rhythm of the national economy so that it remains stable. Inflation must be controlled so that people’s purchasing power does not collapse.

The Rupiah must be maintained so that the business world is not afraid to make investment decisions. Legal certainty must be enforced so that investors do not feel like they are walking in a space full of uncertainty.

At the same time, permits need to be expedited and economic policies should not change in response to momentary pressures.