UNS — Universitas Sebelas Maret (UNS) Surakarta economist, Lukman Hakim, Ph. D, praises the economic recovery steps taken by the President RI Joko Widodo (Jokowi) in facing the Covid-19 pandemic. He stated that the government has fully understood that the consumption sector supports the Indonesian economy. Thus, the financial aids provided for the community, such as Kartu Prakerja (pre-employment card) and cash relieve (BLT) for the employee with income below IDR 5 million, aims to increase people spending.
“If this year our economic growth can reach four percent, then our economic growth will be equal to previously. And then it can reach zero percent, and I think the government has succeeded because they have found the pattern,” Lukman Hakim, Ph.D., stated in Central Java DPW Islamic Economy Webinar Series on Monday (3/5/2021) through the Zoom Cloud Meeting.
In the webinar on “Opportunities and Challenges for Economics Recovery amid the Pandemic under Sharia Finance and Vaccination Policy,” he explained that Indonesian consumption is still above 50%, and it is supported by 30% investment and 17% of exports. Therefore, he is grateful that Indonesia’s economic growth does not drop too deep like Malaysia, which experienced minus 5.6% economic contraction since the beginning of Covid-19 on 25 January 2020 and recorded a worse financial crisis after the monetary crisis 1998.
“Because our economy is ‘growth yby consumption’. To solve the issue is with consumption. Thus, it is not surprising that since August, the government has poured out a lot of funds,” he stated.
Bad time make good policies
Besides praising, Lukman Hakim, Ph.D., also shared suggestions for the government to learn from the technocrat during the New Order (orba), who stated that even in the worst condition, the government should be able to make a good policy. This suggestion is in line with his optimism about the Indonesian economy at the beginning of 2021. Based on Indonesia’s economic characteristics, the government needs to maintain purchasing power to boost consumption. The government also needs to pay attention to the availability and accessibility of basic needs for the community. In this condition, he also reminded the community not to panic and trust the government’s efforts to solve the recession.
In the webinar, Lukman Hakim, Ph.D., added that the government should be aware of the possible competition among ministries and state institutions such as the Ministry of Finance (Kemenkeu), Bank Indonesia (BI), and Financial Service Authority (OJK). Therefore, he suggested that the plan to revise BI control and returning the OJK function to BI is postponed until Indonesia is entirely free from the Covid-19 pandemic. This is vital because these institutions and Indonesia Deposit Insurance Corporation (IDIC) are working hard to recover Indonesia’s economy post-pandemic. Humas UNS
Reporter: Yefta Christopherus AS
Editor: Dwi Hastuti