JAKARTA - Minister of Finance Purbaya Yudhi Sadive explained the reasons behind the ambition of President Prabowo Subianto's administration to encourage Indonesia's economic growth to accelerate.
As is known, Prabowo targets the Indonesian economy to grow at the level of 8 percent well above the average achievement in the last ten years which has been stagnant in the range of 5 percent.
He also emphasized that the inflationary pressure that occurred was not due to economic growth that was too fast or increased people's purchasing power, but because of the high economic costs (cost-push inflation).
"Demand pull inflation will not occur when your economic growth rate is below the potential economic growth rate, Indonesia how much? If people say 5 percent, if I say it's not enough, if 5 (percent) it's not enough to absorb labor age that enters work age every year. Now five (percent) why is unemployment going down? Because the work is informal, economic design is not like that," he said at the Sarasehan 100 Economist Indonesia event, Tuesday, October 28.
Therefore, he added that the government is now mobilizing all economic instruments, both fiscal, monetary, and private sectors, so that they can work synergically in accelerating national economic growth.
"We don't want our citizens to work in informals. If we can, everyone is rich in the formal sector, so we have to create faster growth," he said.
Purbaya estimates that Indonesia's economic potential growth is in the range of 6.7 percent, namely the level of growth needed so that employment to the formal sector runs optimally.
"You have to grow there at least 6.7 percent to absorb workers who are entering their working age in the formal sector. So I'm not talking about workers who are less guaranteed for the future. We are talking about a formal sector that guarantees a rich future," he said.
SEE ALSO:
Lebih lanjut, Purbaya menambahkan, sejak krisis ekonomi beberapa dekade lalu, Indonesia belum pernah lagi mencatatkan pertumbuhan di atas 6 persen dan kondisi ini menyebabkan lapangan kerja formal semakin terbatas.
"Jadi banyak tenaga kerja kita yang masih menganggur atau kerja pun di sektor informal bahkan sarjana loh banyak yang seperti itu. Jadi Anda enggak usah takut kita tumbuh terlalu cepat sekarang, justru kita harus tumbuh lebih cepat supaya kita semua bisa kaya bersama," pungkasnya.
SEE ALSO:
Furthermore, Purbaya added, since the economic crisis a few decades ago, Indonesia has never recorded growth above 6 percent and this condition has limited formal employment.
"So many of our workers are still unemployed or work in the informal sector and even undergraduates are like that. So you don't have to be afraid that we will grow too fast now, instead we have to grow faster so that we can all get rich together," he concluded.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
