Economists: Economic Growth Must Be Inclusive, Can Enjoy All Can Be Enjoyed

JAKARTA - CORE economist Hendri Saparini said the target of economic growth in the range of 5 percent this year could be achieved.

However, according to Hendri, the question is whether this growth can be enjoyed by all circles.

Hendri added that Indonesia's economic growth must be inclusive. This means that it is felt by many community groups, not growth driven by a small group of people.

"Economic growth does exist, but tends to the top group. The under-sending group is based on BLT (Direct Cash Assistance). There is no adequate additional income," he said in an official statement, Monday, October 10.

According to Hendri, this is a big job for the government to open up opportunities for the lower class to increase their income.

"The lower group does not enjoy growth. And so it is a big homework that we are waiting for how to move the perpetrators under so that they can carry out economic activities so that there is additional income," said Hendri.

Hendri said the increase in fuel oil prices (BBM) was also not felt by the top group, and lower or vulnerable groups were given BLT.

However, he continued, this is only a matter of time, until prices are corrected and affect public consumption.

"This means that if there is an increase in fuel prices, the lower group will reduce consumption not in the first round, but later they will get next, because it will increase prices that have been postponed so far," explained Hendri.

Still, Hendri said, Indonesia's economic growth until the end of this year will remain strong, healthy, can be in the range of 5 percent due to strong domestic consumption, windfall exports and investments in the upstream sector that are still growing.

Previously, Coordinating Minister for the Economy Airlangga Hartarto said Indonesia Indonesia was one of the two G20 countries with the highest economic growth, even beating the UK.

"So this year, God willing, we can grow at 5 percent," said Airlangga.

Indonesia's Economic Growth Can Capai 5 Percent

Meanwhile, Program Director of the Institute for Development of Economics and Finance (Indef) Esther Sri Astuti said related to Indonesia's optimistic economic growth could be at 5 percent.

Esther assessed that it would restore the trend of economic growth as before being hit by COVID-19.

"Indeed, on average, historical data trends, Indonesia is indeed 5 percent. That's when conditions are normal. But during the pandemic it's minus. Then we try to restore the economy," he explained.

According to Esther, 5 percent is a good number, given that domestic and global economic conditions have not fully recovered from the impact of the pandemic.

Moreover, plus the threat of a global recession due to geopolitical conflicts as well as food and energy crises.

"If we can reach 5 percent, that's good. Because next year's prediction is a global recession due to geopolitical conflicts and the impact of COVID-19 that has not been completely completed," he said.