Economist: Govt Should Expedite Spending, Control Exchange Rate

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  • TEMPO.CO, JakartaGeneral Chairman of the Indonesian Economists Association Darmin Nasution has urged the government to speed up spending and control the exchange rate.

    Nasution made the remarks during a gathering attended by President Joko "Jokowi" Widodo, entrepreneurs, academicians, investors, and capital market banking circles, at the Jakarta Convention Center here on Thursday.

    At the gathering based on the theme, "President Jokowi Responds to Economic Challenges," he also expressed hope that the government willimplement measures posthaste to restore economic growth to fulfill future expectations.

    The gathering was also attended by Chairperson of the PresidentialAdvisory Council Sri Adiningsi, National Police Chief General Badrodin Haiti, Transportation Minister Ignasius Jonan, and Trade Minister Rachmat Gobel.

    According to Nasution, there are four key issues that must be tackled by the government---the slowdown in economic growth, the prices andavailability of basic commodities, the stability of the value of the rupiah, and public savings.

    "The government should provide incentives to break the cycle of market pessimism," he pointed out, adding that the ineffectiveness of fiscal policies was the main problem.

    Moreover, the government has collected taxes in considerable amounts.

    Admitting that the government's ability to spend was sluggish, Nasution stated that it has a higher budget to spend in 2015 than it did last year. The availability of more funds has not proved effective in the expenditure.

    "If capital and goods expenditures are carried out well by the government, businesses will be interested to invest and households will also raise consumption," he affirmed.