UMY Economics Professor: Indonesia's 8% economic growth is not out of reach

Yogyakarta – Professor of Economics at Universitas Muhammadiyah Yogyakarta (UMY), Prof. Imamudin Yuliadi, believes Indonesia’s economic growth of up to 8 percent is still achievable if the agriculture, manufacturing sectors and macroeconomic stability are strengthened. ‘If we are able to organise the agricultural sector, strengthen industry, and maintain macroeconomic stability well, achieving a growth target of 7 to 8 percent is not out of the question,’ he said in Yogyakarta on Friday. However, he notes that potential has not yet been fully utilised. The income levels of people still in the middle category and the rapid flow of imported goods, he said, pose challenges to stimulating domestic consumption and production. Import policies, often used as a short-term solution when supply shortages or inflation pressures occur, can undermine the foundation of national production, particularly in the agricultural sector, he argued. ‘If we have a clear roadmap for agricultural sector development, from commodities to strengthening from upstream to downstream, that is actually our strength,’ he said. He also believes that rent-seeking economics hampers national economic autonomy. ‘Rent-seeking economics is damaging. When imports are made, there is potential profit for rent-seekers. Ultimately, import policies are pushed for various commodities, which disrupts our domestic market,’ he added. Imamudin noted that several government programmes, including the Free Nutritious Meals (MBG) programme, could stimulate regional economic activity if managed well and biased towards local products. He said the programme could become a gateway to strengthening local agriculture, livestock, and fisheries sectors if its supply chains involve domestic economic players. ‘The key lies in policy consistency and the willingness to continually improve,’ he concluded.