Economists Express Domestic Economic Strengthening Is More Urgent Than Opening Wider Import Faucet

Illustration (Photo: Doc. ANTARA)

JAKARTA - Economic observer from Andalas University (Unand) Syafruddin Karimi said the government seemed to be in a hurry to offer trade concessions to the United States (US) amid weakening domestic economic conditions.

According to him, public consumption is currently decreasing, layoffs continue to occur, and the purchasing power of the middle class is getting worse.

"In the midst of this situation, opening the door to import wider will only weaken the national industry that should be protected," he told VOI, April 16.

Syafruddin said the policy steps taken by the government reflected more efforts to ease pressure from abroad than to strengthen the foundations of the domestic economy.

According to him, if the direction of trade diplomacy like this continues, Indonesia risks losing its competitiveness and increasingly depends on the interests of other countries.

To overcome the weakening of people's purchasing power, Syafruddin said the government needed to immediately take targeted policies and have a direct impact.

He added that this could be started by strengthening people's real income through wage adjustments and social assistance, as well as reducing the cost of living by controlling prices and providing strategic subsidies.

In addition, Syafruddin said state spending should be focused on labor-intensive programs, strengthening MSMEs, and projects with high multiplier effects, and building basic infrastructure.

In a situation where consumer confidence decreases, political and legal stability must also be maintained so that people trust again to spend their income.

"In a declining consumer confidence situation, the government is also obliged to maintain political and legal stability so that the public is confident again to spend their income," he said.

Syafruddin emphasized that the recovery of purchasing power is not just an indicator of economic growth, but is an important pillar for social stability and national resilience in the face of increasingly complex global pressures.