LPS Boss Reveals Two Economic Machines Must Be Balanced For Optimal Growth

JAKARTA - Chairman of the Board of Commissioners of the Deposit Insurance Corporation (LPS) Purbaya Yudhi Sadive said, domestic consumption and exports are two economic machines that must move in balance in order to achieve optimal growth.

Still, said Purbaya, the domestic economy has a more dominant portion of gross domestic product (GDP).

Therefore, there needs to be a strengthening of domestic consumption so that the economy is maintained, especially in the midst of many external challenges from the global economy.

"Even if there are 80 percent of our domestic power, only 20 percent of exports, it's just a matter of how we are smart in all domestic economic machines," said Purbaya as quoted by ANTARA, Friday, August 8.

According to Purbaya, one way that can be done is to encourage banks to channel financing to economic sectors driven by the business world. This condition can run well, if optimism is created.

"Now there are programs from the Government such as Free Nutrition Food (MBG) and Red and White Cooperatives, this is to maintain stability and there must be, but don't forget the private sector," he said, while speaking at the LPS Financial Festival.

At the same festival, Surabaya Mayor Eri Cahyadi said they were trying to move around 2.8 million micro, small and medium enterprises (MSMEs) which have a turnover of around Rp. 188 billion.

Pemkot, kata Eri, menyulap aset-aset yang menganggur menjadi tempat usaha warga yang digunakan sebagai kafe, laundry, dan cucian motor.

Hal itu dilakukan untuk merakit ketahanan ekonomi.

“Jadi aset-aset menganggur bukan hanya untuk pengusaha besar, tetapi juga ke pelaku UMKM,” ujar dia.

Dengan optimalisasi aset tersebut diharapkan semakin banyak yang berani membuka usaha, sehingga menggerakkan ekonomi lokal yang otomatis menyerap tenaga kerja dan meningkatkan pendapatan masyarakat.

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The city government, said Eri, has turned idle assets into places of business for residents who are used as cafes, laundry, and motorcycle washes.

This is done to assemble economic resilience.

"So the assets are unemployed not only for big entrepreneurs, but also for MSME players," he said.

With the optimization of these assets, it is hoped that more and more will dare to open a business, thus moving the local economy which automatically absorbs labor and increases people's income.