JAKARTA - The House of Representatives Budget Agency (Banggar) considers President Prabowo Subianto needs to lead a comprehensive reform of the financial and fiscal sectors.
The Chairman of the DPR Banggar, Said Abdullahmeny, conveyed this in line with three international rating agencies, namely MorganStanleyCapitalInternational (MSCI), GoldmanSach, and Moody's, which corrected Indonesia's ratings on the stock and credit exchanges and provided notes.
"A number of notes submitted by various institutions can be a momentum for the government to reverse the situation," said Said as quoted by ANTARA, Saturday, February 7.
According to him, the President can turn these various "pressures" into great opportunities through reform leadership in the financial and fiscal sectors.
The governance crisis mentioned by a number of institutions, said Said, needs to be answered with structural arrangements, both in the financial and fiscal sectors.
He reminded that the overall structural reform in the financial sector aims to suppress the spillover effect on other sectors, especially in the bond market which is still the mainstay of the government in financing the State Budget (APBN).
"From a fiscal perspective, it would be good for the President to lead the restructuring of spending to reduce the widening of the deficit as well as an initial step to reduce the debt burden," he continued.
"This effort also mitigates if the tax and PNPB receipts this year experience a shortfall," he said.
Meanwhile, Said argued that various priority programs that have been running or will be implemented are not to be canceled, but their funding is recalculated and their management is improved.
According to him, it is necessary to expand public participation and the involvement of various experts to build the foundation of its technocracy. Serap every criticism as a spirit of renewal and a way to reconcile contradictions.
In the short term, he continued, it is not easy for the government to leave debt. In the short and medium term, the government is considered still need to absorb new debt.
Through various fiscal reforms, he believes investor confidence will also recover, so that the President can convey as brightly as possible on the roadmap for short-term and medium-term fiscal reforms.
"The message is clear, to bind the trust of foreign investors," said Said.
On the other hand, he revealed that because SBN could not continue to absorb liquidity sources from Bank Indonesia (BI) and the State-Owned Bank Association (Himbara), especially in the long term, the need to attract investors, especially foreigners, became an important capital as well as a space to gather trust.
Said assessed that improvements in governance and information openness could be done to reverse the situation, one of which was a structural change in the Directorate General (Ditjen) of Taxes and the Directorate General of Customs and Excise could be carried out by the President, after the steps of the Corruption Eradication Commission (KPK) which successively eradicated fraud in two institutions under the Ministry of Finance.
The President, he said, can also give a clear signal on various steps taken by the Indonesian Anagata Nusantara Power Investment Management Agency (BPI Danantara), which has the main objective of mobilizing the real sector, encouraging more inclusive economic growth, mobilizing industries, and opening new jobs, so that the level of domestic demand will rise again.
It is stated that Danantara's track record as a hedge fund or a hedge fund derived from public funds also needs to be studied more carefully.
The president, according to him, can provide clear guidelines on what is allowed and not allowed for Danantara's position in his role as a hedge fund.
"I am confident that if these things are communicated well, especially to stakeholders, trust will grow and the path to good governance will be brighter," he said.
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