Tampilkan postingan dengan label Economy of Indonesia. Tampilkan semua postingan
Tampilkan postingan dengan label Economy of Indonesia. Tampilkan semua postingan

Sabtu, 08 Juni 2013

The Economy of Indonesia - An Overview

The Economy of Indonesia.. If we look back to a moment in 1998 (when the economic crisis hit the South East Asia), we could sense of desperation in almost every aspect of life among the Indonesian since there is no hope for them in the future.. 

But nowadays, fully in an opposite condition, the Indonesian, with an naive optimism, believe that Indonesia has unlimited chance for improving its economic growth.. 

Indeed, Indonesia has many potencies in improving its economic condition onwards.. Although I do not intend to point out that the economic growth as the ultimate goal AT ALL (we have much greater goals in life, we could discuss about it later on), but as we try to analyze these potencies, we could summarize these as follows: 

1. One of the great achievement performed by our President (Mr. Bambang Yudhoyono) that often been forgotten by us is that he could make Indonesia steady in a stable condition.. It is truly hard to maintain the stable condition.. The former presidents could not achieved it (except for Mr. Soeharto).. Regardless of the opinion from some people that the person behind this effort is the vice President (Mr. Jusuf Kalla), we could conclude cleary that we had obtain big benefit.. This stable condition is the perfect incubator for the growth..

2. The large number of population and great domestic consumption are the factors that could make Indonesia become so tough on global crisis.. The large number of population is an opportunity and threat at once.. Most of the growth of the economy of Indonesia is supported by the domestic consumption.. It makes Indonesia has an independent economic (recalling that the GDP, calculated by expenditure approach, has the components: Consumption, Investment, Government Spending, and the differences between the Export and Import).. Different with China, Indonesia have much less dependency on the export and investment.. (note: for consumption, we could discuss later).. 

3. The growth of economy of China is also one of the factors that gives an economic potency to Indonesia..

4. The flow of hot money from foreign country to Indonesia, that only seek for a profit without even care to build this country, is rapidly comes in..

5. The prudentiality of the Central Bank of Indonesia and some financial institutions make the economic growth is steadily growing.. not getting wild and uncontrollable..

In keeping the growth, we have to put our attention toward this issues:

1. Indonesia, aware or not, is put himself to become a country with a pure capitalism (since many Indonesia forgot about the Pancasila).. The Gini Coefficient is become larger.. This important issue, if not carefully resolved, will eventually crush this country.. Not only at the economic aspect, but also on the social aspect..

2. The prudentiality should be fully maintained for the greediness not to emerged and growing uncontrollable.. 

3. The development of real sector and infrastructure should be maintained too in overcome the threat from the rapid flow of hot money in Indonesia.. This should be done in order to reduce the risk of economic toward the external factors..

4. One thing that should be notice of, and often missed from the observation of many people is that the Materialism philosophy now infiltrate the mind of the Indonesian.. This is a great threat for many aspects in Indonesia.. 

At last, let us think what is the best for this country..