In the National Medium Term Development Plan for 2015 to
2019, the government has been targeting economic growth in Indonesia at 7-8% in
2019.
To encourage economic growth in Indonesia at 7-8% is not an
impossible thing, but it is not as easy as talking. Therefore, the government
as leader of the nation should have been setting "brilliant" strategy
to achieve the economic growth target.
Vice Chairman of Committee on National Economy &
Industry (Komite Ekonomi & Industri Nasional/KEIN), Arif Budimanta, said
there are three main priorities that can be executed by the government to
encourage economic growth in accordance with the target at 7-8%. First,
Investment must be increased by 10% per year. Second, the government must be
encouraged exports to grow at 3% per year. Third, the government must be able to
control imports.
To achieve the target is not easy because there are many
challenges and obstacles, both internal and external that can make the economic
growth at 7-8% only wishful thinking. KEIN also said Indonesia will be facing the
external challenges such as a decline in oil and commodity prices that hampered
Indonesia’s economic growth in 2015 especially.
Not only that but also KEIN stated the internal challenges
of Indonesia are also important, such as:
First, Structure of Indonesian economy is quite vulnerable
because is still 56.86% supported by domestic consumption. Second, The national
export performance has not been too strong although recent months have shown
improvement. Third, Limitation of fiscal space which makes the government's
step faltered. For the last, Productivity & competitiveness of Indonesia is
also low compared to neighboring countries so that to make investors prefer to
invest in other countries.
In addition, perhaps the government can encourage investment
in the manufacturing sector especially because it is not without reason, as
evidenced in the 1990s the manufacturing sector was able to contribute 30% to
GDP and at the time, economic growth reached 7-8%. Therefore, it is better if
government embraces and collaborates with industry stakeholders so that the
manufacturing sector can make a significant contribution to GDP. With a note
without ignoring other sectors, because if all sectors can be optimized, of
course, it will be "perfect", right?
So, Is the economic growth target of 7-8% in 2019 realistic?
or only wishful thinking?
I always try to do and to spread the goodness, because I believe that's a way to seduce The God to always give the best for me, and I also don't know for sure which the goodness will save me from something bad.
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