Ketum HMS Center Highlights Indonesia's Debt Pretexted 'Foreign Assistance'

JAKARTA - The prolonged economic crisis and slow economic recovery show the fragility of Indonesia's economic foundations that have been built so far. The practice of monopoly, conglomeration and the capitalism economy kills people's businesses, expanding economic inequality and social jealousy.

This condition is exacerbated by the culture of being fond of debt and sweetening the term foreign debt with foreign aid. Unfortunately, again, many foreign debt from donor countries and international financial institutions such as the World Bank are corrupted by irresponsible people.

"This leak rate is quite significant and even takes a fairly large portion of the total development budget," said the General Chairperson of the Prosperous Community (HMS) Center, Hardjuno Wiwoho in Jakarta, Saturday, September 9.

He explained that many of the World Bank's loans to Indonesia were leaked in the Indonesian bureaucracy.

"I think, if this foreign debt issue is not resolved properly, it will hinder economic recovery and bring down the dignity of the Indonesian nation in the eyes of the international community," he said.

Hardjuno, regretted President Joko Widodo's statement asking for fairer treatment from the World Bank. Because so far Jokowi is a president who has a very hobby of debt compared to all previous Indonesian presidents since President Soekarno.

"Lows have become an option and even a hobby of Pak Jokowi's government. 10 years of ordering to increase debt of IDR 5.125 trillion so that our total debt is now IDR 7.787 trillion. It's like being happy with debt but it's your turn to pay complaining, asking for fair treatment, "said Hardjuno.

Jokowi should have prepared a plan to ensure that every rupiah of debt taken by the government is really productive so that it can pay debts happily without complaining. Everywhere even at the family level, debt must always be productive.

Utang 1 must get more than 2 to pay off debts and interest and the rest is the operating profit from the debt. Don't want debt but it's your turn to be billed difficult. What is this name? We question the effectiveness and productivity of the debt that Jokowi takes if this is the way," said Hardjuno.

To this day, there has been no concrete data showing significant changes in the use of Indonesia's debt. Even though the Indonesian people have the right to know the use of Indonesia's debt.

This means that debt must be used efficiently for projects that really provide long-term benefits for the Indonesian economy. But unfortunately, many debts are also corrupt.

How many corruption cases are in infrastructure. Ministers, regents, and village heads are imprisoned for infrastructure whose money is from debt," said Hardjuno.

Masifnya budaya korupsi ini menjadi pertanyaan rakyat Indonesia. Terutama, sejauhnya benefit utang ini dalam peningkatan pendapatan negara. Sebab, data menunjukkan bahwa sektor pajak di Indonesia masih menghadapi tantangan besar dalam mengumpulkan pendapatan yang cukup.

According to Hardjuno, with debt continuing to increase, the risk of inability to pay off state debt is getting bigger.

"And this is very dangerous for this nation in the future," he explained.

Hardjuno also criticized the lack of transparency in the use of funds received from, for example, the World Bank alone. For this reason, he urged the government to explain the use of this debt and how it will impact economic development and community welfare.

"And Jokowi must explain before his government ends," said Hardjuno.