RI Wants 8 Percent Economic Growth? This Is The Strategy According To Indef

Director of Big Data Development Indef Eko Listiyanto. (Photo: Doc. Antara)

JAKARTA - The Institute for Development of Economics and Finance (Indef) recommends a number of strategies from short, annual to medium-term to increase Indonesia's economic growth by 8 percent.

"I offered it a game changer to be able to overcome the stagnation of our economic growth, which has only been 5 percent for years, that's all," said Big Data Development Director Indef Eko Listiyanto in a public discussion in Jakarta, quoted from Antara, Tuesday, November 19.

In the short term, Indef recommends a number of strategies, which include one hundred days of improving people's purchasing power, preventing wave termination of employment (PHK), the effective implementation of the Free Nutrition Food Program.

"This is the short term, the most important thing in my opinion is that the first 100 days must be able to improve purchasing power. Whatever is done, any policy, make sure it can improve purchasing power, yes, growth, say household consumption can be above economic growth, that's roughly the case. If there are indications, there are new expectations, "he said.

As for the annual period, the strategy that can be done is to ensure liquidity support for economic growth, increase investment and decreasement of the Incremental Capital Output Ratio (ICOR), and increase the performance of the industrial sector.

As for the medium term, Indef provides strategic recommendations in the form of improving the quality of human resources (HR), self-sufficiency in food and energy, as well as increasing access to basic services such as homes, water and sanitation.

"So we need this strategy, what is the strategy? Short-term, annual, and medium-term, to be able to ensure our economic growth leaves the stagnation zone at 5 percent, not to 4 percent, but to 6 percent or even 8 percent like the ideals of the government," he said.

Eko said that the wave of layoffs in the future must be more avoided, one of which is by not raising the current administrative prices group, until the economy improves.

In addition, to achieve growth beyond 5 percent and even reach 8 percent, Eko said liquidity in banking and investment must increase, along with increasing the performance of the industrial sector because industry is the main contributor to Indonesia's economic growth.

"Improving the performance of the industrial sector, I think this is like it or not, want to grow higher, if the line is not industrial, it will be a bit difficult, because earlier the industry was the biggest in us, and the impact was also big. If it can grow industry, there are many things that can be done. But if the industry doesn't grow, there's not much to do," he said.