Future Challenges: Between Growth And Stability

JAKARTA - Purbaya Yudi Sadives expressed his commitment to achieving economic growth by 8% as Prabowo implies. Although it is recognized that many economists consider it a very ambitious target. The biggest challenge is to convince markets and investors that behind its unconventional style and policy, it will still maintain fiscal discipline.

The question of his commitment to the budget deficit limit of 3% of GDP rules that were considered sacred post-crisis 1998 still surfaced. Purbaya answered briefly, "I am a fiscal expert, so I fully understand what prudent (wise) fiscal policy is like," he assured.

Currently, Bunga Bank gives rise to people's passion to attract people to try and distribute money for spending. An approach that contradicts its predecessor, prompting Purbaya's breakthroughs to become a new color with its economous mashap which is far from criticism of its safe play at the benchmark of its successor

The style of pplos pplos is considered inappropriate because of the celas celos style by talking. Had invited criticism from the DPR. Especially compared to the previous Minister's more formal communication style. However, Purbaya's communication style contradicts the previous meteri style, but the public has no problem with the communication style but its performance

Purbaya's policy to channel 200 trillion funds deposited in BI without being channeled had raised criticism and protests from fund owners, for example criticism from veteran lawyer Hotman Paris Hutape who admitted that his money had decreased because the flow of deposit interest was reduced. He also intends to divert his deposits to buy land and transfer to buy property in Bali.

Meanwhile, another fellow lawyer, Dualifa Yumara, responded to Hotman Paris' protest, as a result of Purbaya's policy. "This sign has an impact on the economy and the policy is liked and supported by the public, that way because it then gets support, for creating economic growth," he said.

According to Purbaya, Purbaya's policy only shifted funds from BI to Himbara, the most important thing according to Purbaya, is the simplest step now that bank interest has dropped. He admitted that he had not taken certain steps or policies, while doing for example being flooded with liquidity, reversing the direction of public confidence index again, that's the government's confidence index, the score, which was originally increasing, according to him, has not been improved, spending is absorbed.

Regarding Purbaya's speech style, he made sure that he did not move on his own but on the orders of the President. So that the more convinced the steps are supported by the president. The positive perception of the president's performance is not too far away from being pushed down and it's an ancient work.

Since being appointed as Minister of Finance replacing Sri Mulyani, the name Purbaya Yudhis Sadive immediately stole the public's attention. Not only because of his qualified economic background, but also because of his high-speed, straightforward, and brave speech style of hitting a stiff bureaucratic standard. He is known as a person who is 'coboi' who dares to take risks, does not fear differences of opinion, and always demands quick results.

In a short time, a number of his policies rocked public spaces and caused heated debate. Some call it fresh wind of fiscal reform', but some think the steps are too aggressive and have the potential to cause unexpected long-term effects.

The rare thing that Purbaya took in his early days was injecting an injection of Rp200 trillion into Himbara Bank: What had become a public debate of encouragement or danger?

Purbaya opened big steps by injecting Rp200 trillion into state-owned banks (Himbara) to strengthen banking liquidity. The goal is clear, to maintain the circulation of money in the midst of strict global conditions and encourage the financing of MSMEs and national strategic projects.

This policy is considered capable of moving the real sector quickly, holding down potential bad credit, and encouraging banks to be more aggressive in channeling loans to the productive sector.

However, conservative economists think this step is at high risk. If the supervision is weak, the amount of funds can be sucked into the old conglomerate, not to MSMEs," said a fiscal observer. There are also those who think this is a signal that the government is starting to "pawn" the principle of fiscal prudence.

Taufik Ahmad, an Indef researcher, stated that there are concerns at Himbara bank, if forced to distribute credit but the feasibility is not there, it will be dangerous. But until yesterday there was no backfire

Moratorium On The Increase In Cigarette Excise In Order To Hold Unemployment Rate

The next policy shocked many, previously many parties proposed an increase in cigarette excise to tackle tax burdens or decrease income. However, Minister Purbaya took bold steps to moratorium the increase in cigarette excise.

Purbaya reasoned that the tobacco industry absorbed millions of workers from farmers, laborers, to small traders who had been under pressure by the increase in excise for years.

This step was warmly welcomed by tobacco farmers, factory workers, and local tobacco-producing governments. They feel that finally there are ministers who side with the lower people's economy. On the other hand, public health groups consider this policy a major setback in an effort to suppress cigarette consumption. They accuse Purbaya of being more pro-industry than public health.

Another Purbaya policy that has been highlighted and complained by many parties, the tax system for the reform of the tax system through the alication of the beliax which is considered mass, However, Purbaya responded to the complaint by bringing IT experts from the ITB camp to examine the application, the problem is that the application is still under the authority of the LG contractor, but his party has provided input on improvements to the institution.

Hunting For Tax Arrears

Purbaya also initiated the improvement of the beliax system by cooperating with independent experts not only big consultants. He wants the tax system to be transparent, efficient, and resistant to manipulation. At the same time, he stated on several occasions that he was hunting for 200 large tax arrears who had escaped the snares of the law.

The public welcomes this step as a form of courage against tax oligarchs. Transparency and fiscal law enforcement are considered to be alive again. However, some consider that Purbaya's collaborative style can cause tension with big business actors. If you are chased without communication, investment can escape," said a top entrepreneur who declined to be named.

One of the boldest policies is the withdrawal of the budget from institutions that are considered inefficient. He said there was a 'sleeping budget' of hundreds of trillions that did not have a real economic impact.

This step is appreciated by the public because it shows a firm attitude that is protected by the waste of the state budget. State money must work, not just stored in the institution treasury. However, criticism of institutions whose budgets have been cut does not feel involved in evaluation. Several social and research programs have also been hampered, causing protests from academics and NGOs.

After experiencing protests by a number of Regional Heads regarding Transfers to Regions to Increase to Rp693 Trillion, he reasoned that to balance development, Purbaya increased transfers to regions to Rp693 trillion and it was claimed to be the largest in history. He reasoned that the regions must be given a larger fiscal space so that it does not continue to depend on the center.

This policy was welcomed positively by regional heads. Many think that this is a new wind of fiscal decentralization. However, observers assess the increase in transfers without improving governance risks causing corruption in new regions. The money is big, but the absorption capacity of the region is still weak," said an UI economist.

Purbaya also paid great attention to eradicating illegal textile imports from China. He even went directly to the port and ordered tightening supervision.

Whatever the view of him, one thing is for sure: Purbaya changes the face of the Ministry of Finance to be bolder and more transparent. He is not just a technocrat, but reformist in a cowboy style and Indonesia is waiting, whether his fiscal policy shot hits the target, or in fact causes a bigger ripple in the future.