Lingkar Studi Perjuangan (LSP) urged the Government to do the innovation policy and leave the World Bank formula, in order to achieve economic growth at above 6.5 percent.
The formula of the World Bank in the pursuit of growth is through increased debt, tightening budgets, and increases in taxes.
"Currently, the ratio of debt service payments (debt service) against Indonesia exports already yellow light (39 percent), far above the safe limit of 25 percent," said researchers from the Lingkar Studi Perjuangan, Gede Sandra in Jakarta, Friday (21/12/2017).
Citing projections of Asian Development Bank (Asian Development Bank/ADB) which was released on December 13, said Gede, the average economic growth of developing countries in the Asian region this year were in the range of 6 percent.
Meanwhile, without entering the developed Asian countries, economic growth averaged 6.5 percent on rising to 2017.
"Indonesia, which often boast about because of its membership in the country of the G20, in quarter III 2017 growth turned out to be just under the average in Asia and Southeast Asia which amounted to 5.2 percent. The III quarter of Indonesia's economic growth is only 5.06 percent, still 1-1.5 percent below the average growth in Asia, "he said.
Gede added, a step the Government by making budget cuts to programs that inefisien is indeed a right, but not to cut programs that accelerate economic growth and improve the people's welfare.
"At a time when the Government wants to rapid growing economy, taxes should be lowered instead. Later when the economy was already growing rapidly, the tax return is pursued, "he said.
A Growth, Prune Debt
In particular, Gede invites audiences reflect the success of the Government of Indonesia on Wahid's era, in which the achievement of the Government of Wahid in economics is quite exceptional.
"In fact, at the beginning of his rule, Wahid received the legacy of an economy from President Habibie in conditions of growth economists of -3 per cent," said Gede.
After nearly three months of work, economic growth at the end of the year 1999 had been the level of 0.7 percent or jumped 3.7 percent.
A year later, Indonesia's economy to grow to a level of 4.9 percent or jumped 1.2 percent.
"During the era of Gus Dur, the economic team managed to reduce debt amounting to 4.15 billion u.s. dollars," he said.
At the end of the era of Wahid's Government, according to the gini coefficient, Gede recorded the lowest ratio in Indonesia throughout 50 years, i.e., 0.31.
The closest achievement can only emulate on Suharto's era in 1993 with the gini ratio 0.32. The difference, Suharto need 25 years to lower the gini ratio to the 0.32 in 1993.
"While Wahid only need less than two years to lower gini coefficient ratio of 0.37 in 1999 to 0.31 in 2001," he said.
Source: Tribunnews
