TEMPO.CO, Jakarta - The Institute for Development of Economics and Finance (INDEF) demanded the government to carefully formulate policy relating to decreasing growth of public consumption and purchasing power.
Referring to a report from Statistics Central Agency (BPS) on early November November 2017, the growth of public consumption slowed down from 4.95 percent on the second quarter 2017 to 4.93 percent on the third quarter.
"This is like economic disease, so it has to be diagnosed. If there is a mistake in diagnose, the policy implemented will not be accurate. So the economic problem has to be fully comprehended," INDEF researcher Ahmad Heri Firdaus said in South Jakarta on Friday (10/11).
Heri explained that the decrease was influenced by a group of Rp 1 to 2 million income as shown in declining retail sales index(IPR) especially in food, beverage, tobacco, and clothing sector.
This is caused by both global and domestic pressure. Domestic pressure, Heri continued, includes the high prices of a group of products controlled by the government. The global drop of prices in commodities as Crude Palm Oil (CPO) to coal also contributed to the decrease, he added.
Representing INDEF, Heri warned the government to maintain stability of prices of basic needs to improve the growth of public consumption.
YOHANES PASKALIS
