Indef Economists Call Job Creation Perppu Evidence Of The Emergence Of Economic Oligarchy

JAKARTA - Institute for Development of Economics and Finance (Indef) senior economist Didin S Damanhuri revealed that the phenomenon of economic oligarchy has emerged in Indonesia. In fact, it will increasingly control politics in Indonesia this year.

Didin said, as soon as the Law (UU) was passed even beyond procedures such as the Minerba Law, the KPK Law, the Job Creation Law, the Constitutional Court Law, the IKN Law, the HPP Law to the most recent work creation Perpu, is evidence that indicates the birth of the economic oligarchy.

In my opinion, the birth of these various regulations is proof of the operation of the oligarchic phenomenon. Because this legislative process is outside or ignores legal institutions and public participation requested by the law itself," he said in his early record in the 2023 Indef year, Thursday, January 5.

In fact, said Didin, these symptoms are of concern to The Economic Intelligence Unit. Based on the report, these symptoms have an impact on the decline in the democracy index which has continued to decline since 2016.

Didin assessed that in this reform era the economic and political oligarchies were increasing. As a result, inequality in the country is getting worse. Referring to Credit Suisse data, the control of assets by the economic oligarchy compared to the majority of the population is very lame.

Didin explained, the four richest people are the same as 100 million people. Meanwhile, the richest 1 percent assets are equal to 46.6 percent of gross domestic product (GDP) and the richest 10 percent is equal to 75 percent of GDP.

"Even sharper, if measured by the oligarchic index or the power index material in the style of Jaffrey Winter, the number of the 40 richest people is divided by income per capita. The result was that in 2014 Indonesia was the second most severe after China, with an oligarchy index of 678,000 times," he said.

Meanwhile, said Didin, in 2018 it increased 750,000 times. Meanwhile, in 2020 the oligarchy in Indonesia was the worst in Southeast Asia, which was 822,000 times.

By 2022, the index has been 1,060,500 times.

Dan ini dibenarkan juga oleh rekening yang ada di perbankan bahwa mereka yang punya rekening di atas Rp5 miliar terus meningkat. Sedangkan mereka yang di bawah Rp100 juta itu mengalami penurunan, katanya.

According to Didin, the main factor that causes the proliferation of economic oligarchs in Indonesia is because the oligarchs are allowed to become political investors.

"Oligarchy in Indonesia is allowed to inject funds at all levels of general election, both Pilkada, Pilwakot to the presidential election," he said.