DPR Member Of PKS Faction: Instead Of Attracting Investments, It Is Better For Government To Increase Purchasing Power In Regions

Illustration. (Irfan Meidianto/VOI)

JAKARTA - Member of Commission XI DPR RI Anis Byarwati stated that the government needs to prioritize increasing the purchasing power of citizens in various regions rather than attracting more investment both from within and outside the country.

Anis Byarwati stated that investment in the macroeconomy does not have the same role as household consumption which dominates the contribution of 57 percent to national economic growth.

"If the goal is to increase Indonesia's economic growth, we know that in 2020 we will experience negative economic growth for three consecutive quarters, so if we want to increase the biggest one is from the household consumption variable," said Anis as quoted by Antara, Monday, May 3.

According to him, the indicator of household consumption is spending from the public so that suppliers can supply goods for the public to spend.

This, he continued, is considered to be driving the economy so that the wheels of the economy can run and people's purchasing power has a relationship with income.

"If the income in a pandemic has fallen, more than three million people have lost their income, some have been laid off, some have gone bankrupt, thus affecting purchasing power which ultimately affects the level of household consumption, because when the pandemic ends, the economy can move again," said Anis.

He is of the opinion that the government needs to improve people's purchasing power through assistance with social funds or building jobs.

Previously, DPR Commission XI member Heri Gunawan wanted the government to extend the Cash Social Assistance Program (BST) in order to boost public consumption in welcoming the Eid or Idul Fitri period.

"The government should extend the BST program to maintain people's purchasing power during Ramadan and Idul Fitri which falls in May 2021," said Heri Gunawan.

According to him, extending the BST which has been rolled out for the first four months of 2021 (January-April) is also expected to be able to catch up with the economic growth targeted by the government at 5.3 percent.

He is of the opinion that extending the BST will be a solution to the low consumption or purchasing power of the community after the government banned the Lebaran homecoming. In fact, going home is considered to be able to trigger higher public consumption.

"Currently the government is rolling out the BST Program which reaches 10 million Beneficiary Families (KPM) throughout Indonesia, including Jabodetabek. The amount of assistance is IDR 300 thousand/KPM for four months," said Heri.

If during Ramadan and Eid Al-Fitr there are no BST, he said, he is worried that this could potentially worsen economic conditions. He reminded that in 2020 the government had also disbursed THR of IDR 29.382 trillion.