An Ambitious Government = Failing?

in government •  7 years ago 

Economic cabinet meeting held at Istana Bogor at the end of 2010 resulted in a number of economic achievement targets that are optimistic, even ambitious. However, these targets are no longer a utopi if everything is run consistently, and supported by adequate human resource quality.

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By 2025, Indonesia is targeting entry into 10 major countries of the world, and by 2050 to be the six major countries in the world. Coordinating Minister for Economic Affairs Hatta Rajasa said the target is not something impossible to achieve.

Politician of the National Mandate Party (PAN) then offered a number of facts that prove that Indonesia is now starting to poke into a row of countries with great economic power, even already ranked 16th of the world.

This is indicated by the increasing number of significant growth in the last two years. By reflecting on these growth figures, within the next two years, Indonesia's economic growth is expected to skyrocket to 6.8%, and in 2014 it will be capped again to 7-8%.

In 2014, Indonesia's gross domestic product (GDP) is also expected to reach US $ 1.2 trillion. That number is expected to double to US $ 3.7-4.7 trillion by 2025 with per capita income of US $ 12,800-116,160. If the starting point for the declaration of ambition proclaimed by the government is 2014, in 2050 Indonesia becomes the sixth strongest country in the economic field.

Senior researcher Center of Reform on Economics (Core) Indonesia Mohammad Faisal rate, the government's target of economic growth is too ambitious. It is also considered to cause a number of problems that are contrary to the spirit of improving the Indonesian economy.

Faisal explained that the government of President Joko Widodo in the National Medium Term Development Plan (RPJMN) 2015-2019 set the target of economic growth of 7 percent. In fact, up to three years of work, the target has not been achieved.

The government of Joko Widodo (Jokowi) targets infrastructure development with an estimated investment of Rp 5,000 trillion until the 2019 period. The desire is shown through the allocation of infrastructure budgets from the state budget that increase significantly each year.

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Enny Sri Hartati, Executive Director of the Institute for Development of Economics and Finance (indef), is not convinced that the value of infrastructure budget in 2018 amounts to Rp 410.7 trillion. He considered that the value is less realistic because tax revenues at the end of 2017 will likely not exceed the target.

Enny said that the tax revenue target at the end of 2018 will be around Rp 1,200 trillion, less than the target of Rp 1,609.4 trillion. He said, if the achievement of tax revenue is above the Rp1, 200 trillion, the government should be able to ensure that the mandatory budget. "Such as education, health, special allocation funds, and general allocation funds," he said.

Regarding the tax revenue target of Rp 1,609.4 trillion, Enny said there should be a consequence of adding debt if the government is optimistic to reach that figure. "Adding debt also has a limit," he said.

He also said that in addition to priority on mandatory budgets, there is a regular budget that needs to be considered in the 2018 regional head elections. He said that the funds for pilkada could not be budgeted separately. "It can not be eliminated or cut off," he said.

Enny considers the position to be almost like a routine budget when it is set for the elections. Looking at the situation, he assessed the allocation of infrastructure allocation of Rp 410.7 trillion is quite ambitious

Former President of the Republic of Indonesia Susilo Bambang Yudhoyono called the ambitious Joko Widodo Government plan, especially in the economic field.

Moreover, when the Indonesian economy is facing some challenges from abroad.

Vice Chairman of the House of Representatives Fadli Zon assess the posture of the draft APBN 2018 so high.

The reason, when viewed from economic growth second quarter 2017 only 5.01 percent.
"I see the government's target is too optimistic and ambitious," said Fadli Zon at the Parliament building, Jakarta

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