|Special Staff (stafsus) of the President of the Republic of Indonesia in the Field of Economics Prof. Dr. Ahmad Erani Yustika. (Photo: Mirza / PR)|
Special Staff (stafsus) of the President of the Republic of Indonesia for Economics Prof. Dr. Ahmad Erani Yustika, had the opportunity to give a guest lecture at the Economics and Development Studies (IESP) Department at the Faculty of Economics and Business (FEB) University of Muhammadiyah Malang (UMM), Wednesday (13/3). On this occasion, Erani invited UMM students to reflect on the Indonesian economy.
"Let us remember the economy in the new order era, very centralized. All decisions are taken based on the views of the central government. This thing often results in economic policies that are not on target and are not needed," he said. A centralized economy mentioned the professor of economics, finally met its peak in 1998.
Indonesia's inflation when it touched 77.63%, it means that the prices of goods in Indonesia were very expensive, and the increase was very rapid. Inflation or rising prices of goods was because of the weakening of the rupiah against the US dollar, which was Rp. 16,000. "Stock prices plummeted, many companies and banks collapsed and finally Termination of Employment took place everywhere," explained Erani.
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The government, he added, gave birth to the Bank Indonesia Liquidity Assistance (BLBI) policy, which injected financial assistance to banks for economic stabilization. A dozen years later, according to Bank Indonesia (BI) data in 2018, Indonesia's inflation was at 3.13%. Economic improvement had been very well done. Economic equality was also slowly being felt by the people of Indonesia.
The current economy according to Erani was far better than before. The existence of human development policy to reduce inequality was a concrete manifestation of the development of Indonesia from the edge. "A centralized economy is not a good economy. Each region needs to be given the authority to manage its own economy," explained the man born in Ponorogo in 1973.
Indonesia's economic growth continues to improve. This was evidenced by the 2015-2018 economic growth trend. In 2015, it was estimated at 4.9% and in 2018 it rose to 5.17%. This meant that Indonesia's economic performance was still consistently growing positively amid the global economic recovery. A fair economy was also manifested in the Village Fund distribution program.
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This fund, he continued, was to support the community's economic activities. Among others, village roads, bridges, markets and sports facilities. In addition, it was also intended to improve the quality of life of rural communities such as clean water, integrated health posts and wells. Each village receives 900 million to develop its village. "This is a fair economy and not centralized economy," Erani said.
Meanwhile, Hendra Kusuma, SE., M.Sc., Head of Department IESP UMM added that students who take economic disciplines must be able to interpret and analyse every economic development in Indonesia and the world. "Each period is certainly different, so the sharpness of analysis must be possessed to create a better economy in the future," said Hendra. (Win)