Economic Inequality Is Considered To Be The Trigger For Recent Massive Demos

DPR Demo (doc. VOI)

JAKARTA - The Indonesian Center of Reform on Economics or Core Indonesia assessed that there were factors of inequality between communities that made the wave of mass actions continue, even ending in chaos recently.

Core Indonesia Executive Director Mohammad Faisal explained that domestic welfare that has not been evenly distributed has triggered injustice for the lower class.

Moreover, the public is faced with the fact that officials to the DPR are dancing to get a fantastic allowance.

"This is a fire in the husks that will easily ignite the emotions of the community if then there are or are ridden by provocative actions. The data shows that when political elites, state officials and high-ranking officials, including SOE officials, also enjoy luxury through various benefits," said Faisal in a public discussion entitled "Indonesia at Intersection: Inequality, Fiscal Reform and the Future of the Economy" online, Monday, September 1.

According to him, the government must immediately fix economic inequality in the country. This is to reduce the emotions of people who do feel that there is no justice.

Faisal explained, although the data shows that the number of poor people continues to decline, the expenditure is still minimal at only Rp. 1 million per month.

Another factor, he said, is that people are also faced with debt to meet their respective needs.

"So, there is widening inequality here. Plus at the same time if we see there is a tendency for people to borrow money because the need is increasing," he explained.

Therefore, Faisal asked the government to take concrete efforts to resolve the problem.

These steps, among others, cancel tax policies that burden the community, especially the lower middle class, both at the central and regional levels.

"Whether it's related to value added tax (VAT), land and building taxes (PBB) and others for now," he said.

Second, he said, the government needs to revise the transfer discount to the regions (TKD) which triggers a surge in regional taxes and levies.

Third, Faisal said, the government needs to cancel less productive spending and tends to be wasteful, including the formation of new institutions.

"The provision of incentive facilities and excessive allowances for public officials and political elites, including housing allowances for members of the DPR," explained Faisal.