TEMPO.CO, Jakarta - Vice President Jusuf Kalla mentioned three past mistakes that make Indonesia's economy left behind Malaysia and Thailand.

“The first is the cost of the 1998 crisis worth Rp600 billion. In current numbers, it is Rp3,000 billion,” Jusuf Kalla said at the Tempo Economic Briefing on Thursday, October 27, 2016.

In the past, Kalla explained, the government overly trusted and guaranteed everything and that created markup everywhere. Consequently, the current government administration must bear the costs.

Secondly is the lavish use of natural resources. Venezuela crumbled because of it. In Thailand’s efficient economics, the price of industrial gas is as cheap as US$6 - US$7 per mbtu.

The third problem, Kalla continued, is the amount of fuel subsidy that reached Rp1,500 trillion. “The biggest subsidy was applied at the previous cabinet. In my cabinet, the fuel price increased three times,” he said.

According to him, it happened because the government mismanaged the economy from centralism to autonomy. “The present economic cost is seven times larger compared to the autonomy era,” Kalla said.

Therefore, today’s capital and goods expenditures are less than 20 percent. “Back then, it could reach 50 percent which triggered the economy to grow,” he added.

President Director of PT Tempo Inti Media Tbk Bambang Haryamurti emphasized that current global economy is still uncertain. Tempo is attempting to create a mapping on the unstable economy by introducing the 'Tempo Economic Briefing'.

BS