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Economist Faisal Basri says Indonesia`s Economy is Languishing

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23 November 2017 08:40 WIB

Faisal Basri, Chairman of the Governance Reform Oil and Gas. Tempo/ Aditia Noviansyah

TEMPO.CO, Jakarta - Institute for Development of Economics and Finance (Indef) Senior Economist Faisal Basri said that Indonesia’s economic growth in the medium and the long-run is tending to slow down.

The constant economic deceleration, according to Faisal, is detectable annually. He explained that Indonesia’s economy once grew 8 percent but is now struggling at 5 percent growth which he deems is caused by the lack of economic leverage.

“Don’t dream too high yet, Indonesia’s economy is languishing,” said Faisal Basri on Wednesday, November 22.

He criticized the government’s policies that were introduced by President Joko Widodo or Jokowi. “Many of [the policies] are weird,” he said. He criticized Jokowi’s economic growth from the outer regions, borders, and Indonesia’s Eastern regions.

He reasons that even though the government is currently implementing that idea, in reality, the results are not showing. Faisal took an example of the economic growth in Bali and East Nusa Tenggara that has dropped from an estimated 10 percent to 5 percent and is now stuck in 2 percent growth. “Papua and Sulawesi are experiencing a drop too.”

Despite the government’s policies, he claims that the money still mainly circulates in Java and Sumatera. “Something is wrong with Pak Jokowi’s strategy,” said Faisal.

In order to solve this problem, Faisal suggested that the government must have a basic and structural solution that is not instant which is predicted to need time more than two years.

Faisal Basri demanded the government to not force a high economic growth for 2018 considering that the end result would not be too different from what the country is experiencing currently.

CAESAR AKBAR



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