TEMPO.CO, Jakarta - The Institute for Development of Economic and Finance (INDEF) said that Indonesia was facing a potential economic crisis.
“The critical condition must be immediately and appropriately addressed to avoid the economic crisis just like in 1998,” Indef director Enny Sri Hartati said in a discussion in Jakarta on Wednesday, September 2, 2015.
Indef suggested that strategies must be formulated to mitigate the looming financial crises. Indef president director Didik J. Rachbini said that the first strategy was to reform the government political condition by addressing the internal issue.
“[The government] should stop blaming the global condition,” Didik said.
Second, Didik added, the government must anticipate the global fluctuation that recently occurred frequently. Therefore, Didik said, Indonesia would be able to maintain its economic stability.
Didik explained that the government must also find a way to prevent the unemployment rate from rising. The move must also be supported with efforts to boost industries, exports and provide incentives for investors. In addition, Didik suggested the government to reduce imports on unnecessary commodities and concentrate on domestic sectors.