UNS — The Professor in the Faculty of Economics and Business (FEB) Universitas Sebelas Maret (UNS) Surakarta, Prof. Izza Mafruhah discussed the economic transformation in accelerating investment growth in Indonesia. This discussion was held in the national public discussion forum held by FEB UNS in collaboration with the Coordinating Ministry for Economic Affairs of the Republic of Indonesia on Tuesday (30/3/2021).
Opening her discussion, Prof. Izza shortly described the crisis that has struck Indonesia, such as the political crisis, banking crisis, economic crisis, and health crisis. In a deeper analysis, some sectors have plummeted, but some are growing amid the crisis. “The sectors that declined in the crisis are, for example, tourism and transport. Other businesses are growing, especially in terms of information technology, culinary, and health. Among both sectors are in educational and agricultural sectors,” she explained.
She added that business immunity could be categorized into four quadrants based on its production and marketing power. Quadrant 1 is for businesses that cannot produce and market their products, Quadrant 2 for the company that produces but cannot market their products, Quadrant 3 for business without production ability but has marketing ability, and Quadrant 4 for business that can create and sell their products. The key issues in the industry, according to Prof. Izza are product marketing, distribution, and funding. She shared the success story of a business supervised by her team, which developed after the owner took the initiative to share production machines with workers to avoid the crowd during the production process. This step has enabled employees to work while accompanying their children, reducing electricity costs, and reducing consumption.
Prof. Izza stated that the government’s policy in supply and demand is good. At the beginning of the pandemic, the significant layoffs have threatened to lower people’s purchasing ability. The government issued policies that improve people’s purchasing abilities through financial aids aiming to move the economy. The government took a rescue position because the community needs education and information on Covid-19. Then entering the stabilization and recovery phase, the community started to make peace with the pandemic. “After that, the development, the economy slowly recovers with diverse economic activities. Lastly, growth, the condition of growing and recovering economy,” she described.
The Professor also argued that economic transformation could not run alone because it is related to the social, cultural, physical, spatial, and territorial aspects. With 17,000 islands, Indonesia’s economic transformation cannot proceed together considering differences in regional condition and potential. The government has provided a potential map with a unique economic region and specific investment according to their potential. “As ASEAN country, we are placed fifth in infrastructure due to Indonesian territorial span,” she added
Concluding her material, Prof. Izza reminded all participants to contribute to managing the investment in Indonesia considering the challenges in demographic bonus and Indonesia territorial span from Sabang to Merauke. Humas UNS
Reporter: Bayu Aji Prasetya
Editor: Dwi Hastuti