Isu dan Permasalahan Perekonomian Indonesia - Kelompok 2 (5/C2)

Summary

This presentation delves into the key economic issues facing Indonesia in 2020, such as recession risks, the role of digital economy, private sector participation in infrastructure, and the strengthening of the international monetary system. It also covers critical economic problems, including poverty, unemployment, stagnant purchasing power, and declining investment. Solutions are proposed through various economic systems—traditional, centralized, market, and mixed—along with the government's stabilizing, allocating, and redistributing functions to tackle these challenges. The insights aim to provide a clear understanding of Indonesia's economic landscape and potential pathways for recovery and growth.

Takeaways

• 😀 Economic issues in Indonesia are deeply influenced by both global factors like the international monetary system and domestic factors such as poverty and unemployment.
• 🌍 Strengthening the International Monetary System is critical, focusing on synchronized policies between developed and developing countries to ensure global financial stability.
• 💻 The digital economy in Indonesia poses opportunities and risks, with challenges in payment systems and cross-border transactions that need to be addressed for sustainable growth.
• 🏗️ The private sector's involvement in infrastructure financing is vital for Indonesia's development, requiring clear and consistent government policies to foster innovation and investment.
• 🕌 Islamic finance plays a significant role in supporting sustainable growth, offering instruments like sukuk, zakat, and waqf to fund infrastructure and economic development.
• 📉 The COVID-19 pandemic has contributed to a significant economic downturn, with Indonesia facing a potential recession as GDP contracted and unemployment rates soared in 2020.
• 💸 Poverty remains a persistent challenge in Indonesia, with efforts needed to reduce poverty levels to ensure the country's economic prosperity by 2045.
• 🚶‍♂️ Unemployment has worsened due to the pandemic, and the government's initiatives like the pre-employment card program have not been enough to reduce the joblessness rate.
• 🛑 Stagnant purchasing power hampers consumer demand, affecting overall economic recovery and growth in Indonesia.
• 📉 Indonesia's declining attractiveness as a destination for foreign direct investment (FDI) needs urgent attention, as the country’s competitiveness continues to drop in recent years.
• 🎓 Improving human capital is crucial for Indonesia’s future, especially as the country seeks to capitalize on its demographic bonus by enhancing the skills and productivity of its workforce.

Q & A

What is the definition of an economic issue as explained in the presentation?

An economic issue is described as an event or occurrence that may or may not happen in the future, impacting various aspects such as monetary economics, social politics, law, national development, or even crises. It is often referred to as a rumor, gossip, or hearsay.

What are the key economic issues currently facing Indonesia?

The key economic issues in Indonesia are: (1) strengthening the international monetary system, (2) digital economy, (3) private sector participation in infrastructure development, (4) strengthening Islamic economics and finance, and (5) the threat of recession.

How can the international monetary system be strengthened according to the presentation?

The international monetary system can be strengthened through policy synchronization, normalization by developed countries, and responses from developing countries via the enhancement of global financial safety nets. This involves collaboration between global financial safety nets (GSN) and regional financial arrangements (RFAs).

What are the risks associated with the digital economy in Indonesia?

The digital economy presents several risks, including its impact on the economy, payment systems, central bank operations, and cross-border arrangements. These aspects require careful attention to ensure smooth operation and growth in the digital economy.

What role does the private sector play in supporting Indonesia's infrastructure development?

The private sector is expected to play a crucial role in supporting infrastructure development through clear and consistent policy frameworks, good governance, a favorable business climate, and innovative financing models.

Why is the role of Islamic economics and finance considered important for Indonesia?

Islamic economics and finance are significant because they contribute to sustainable economic growth, especially in developing countries. Instruments like sukuk (Islamic bonds) and zakat (charitable giving) can support infrastructure financing and promote economic stability.

What are the potential economic consequences of the COVID-19 pandemic for Indonesia?

The COVID-19 pandemic has caused significant economic contraction, with indicators suggesting that Indonesia might face a recession. Various sectors such as corporations, SMEs, and households are still struggling to show signs of significant recovery.

What are the seven main economic problems in Indonesia identified for 2020?

The seven main economic problems in Indonesia for 2020 are: (1) poverty, (2) unemployment, (3) stagnant purchasing power, (4) investment competitiveness, (5) human resource quality, (6) economic growth, and (7) debt management.

How does unemployment impact Indonesia's economy, particularly during the pandemic?

Unemployment has become a significant problem due to the imbalance between the workforce and available jobs. The COVID-19 pandemic has worsened this issue, with unemployment rising as businesses close, and recovery has been slow despite government efforts like the pre-employment card program.

What is the current state of Indonesia's economic growth in 2020?

Indonesia's economy faced contraction in 2020, with a significant shrinkage in GDP during Q2 2020, as recorded by BPS (Badan Pusat Statistik). The government and Bank Indonesia had initially predicted a lower contraction, but the decline exceeded their expectations, signaling a tough road ahead.

What are the four economic systems discussed in the presentation to address Indonesia's economic challenges?

The four economic systems discussed are: (1) Traditional economy, where resources are shared for collective benefit; (2) Centrally planned economy, where the government controls economic activities; (3) Market economy, where economic activity is driven by free market forces; and (4) Mixed economy, where both the government and the private sector play significant roles.

What are the functions of the government in managing Indonesia's economic issues?

The government's roles include: (1) Stabilization function, to maintain economic, social, political, and security stability; (2) Allocation function, to provide public goods and services like infrastructure; and (3) Distribution function, to ensure equitable income distribution and reduce inequality.