The Role Of The People's Economy In The Current National Economic Recovery

Economic activities in traditional markets. (Photo: Unsplash)

YOGYAKARTA - People's economy is believed to be able to restore the national economy because economic problems come from the people themselves, for example unemployment or the lack of quality of human resources (HR).

Is it true that the people's economy can be a medicine to restore the condition of the national economy? Through this article let us examine the statement in more detail.

The new paradigm of people's economy is evident in society because the people's economy will have a big role to play.

The democratic economic system can thus realize the ideals of economic democracy. This manifestation is as explained in article 33 of the 1945 Constitution.

The article reads "production is carried out by all, for all, under the leadership and supervision of members of the community; the prosperity of the people is what takes precedence, not the prosperity of the individual. " .

People's Economic Contribution in Economic Recovery

Reporting from a study entitled National Economic Recovery towards Economic Democracy, emphasized that the people's economy is sufficient to contribute to the recovery of the national economy.

The study presents data which states that a large part of the Indonesian economy (50-60%) is the people's economy (UKM) which is not entirely measured in GDP figures (Gross Domestic Product).

Meanwhile, the people's economic consumption needs are also met by the people's economic sector as well. It was emphasized that the economy of the Indonesian people was still producing and investing.

The economic development of the people is exemplified by economic activities in rural areas which have high intensity. Likewise, production activities to meet local consumption have been running normally and do not simply consume surplus from the past or the period before the 1997-1998 monetary crisis.

Examples of People's Economic Cases

In addition, the study, which was published in the Indonesian Journal of Economics and Business, took data from the Central Statistics Agency (BPS) and the Regional Government (Pemda) of East Kalimantan as a sample case.

Indonesia is declared to have a “flexible” and “resilient” people's economy because 55% of the people have been self-employed and can easily adapt to changing social, political and security conditions.

On the other hand, the multidimensional crisis that has stagnated the modern economic sector has also been properly responded to by the people's economic sector.

Although macroeconomic indicators do not support high economic growth, the people's economy can develop properly in accordance with the new economic situation and conditions.

There is another implication of the people's economic reliability, namely that it cannot be influenced by political elites. People's economic actors will not carry out economic processes (production, consumption, and investment) despite changes in political conditions.

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