UMY: After the Sea Games, Palembang economic growth remains to decline

Author : Pimpinan Pusat Muhammadiyah | Friday, November 11, 2011 09:19 WIB

Yogyakarta-After Sea Games, it is estimated that economic growth in Palembang will experience a significant decline and governments should pay more attention. Palembang city is one of the areas hosting the SEA Games 2011 besides  Jakarta, automatically its economic growth will also be affected.

This was expressed by Ahmad Ma'ruf. SE, M. Si Lecturer at the Faculty of Economics, University of Muhammadiyah Yogyakarta (UMY) in a roundtable discussion with the theme "The Influence Of Sea Games and Economic Growth" at the Integrated Campus UMY, Thursday (10/11).

Ahmad explained that once the event is running then all sectors of the economy will run. "When this grand event is running then all economic sectors in the area which hosts one of Palembang will use the mobilization of local resources, for example such as catering, hotels, transportation and everything on the local" he explained.

"The use of the biggest budget in the Sea Games is on the construction budget and accommodation, and the total of all these budgets reach one trillion dollars with  674 billion from the state Budget 2011 and 690 billion from the revised State Budget 2011" he added.

Besides, Ahmad also revealed that economic growth has been affected in Palembang since 2010. "South Sumatra in this case Palembang has been benefited the economic growth as it was appointed to be the host in last 2010, where a lot of infrastructure have been constructed in all areas to support the event" he said.

Seen from the graph of economic growth, the increase began to be felt in 2010 and rose slowly until later this event will be held and after the event then the graph of its economic growth is forecasted to drop dramatically.

Ahmad expects that after the games sea, the Government can respond quickly to overcome the problem. "After the Sea Games the government should go the extra mile, by making follow-up plan after the event so that the infrastructure already built can be used continuously and areas of economic growth will stabilize" he hoped.

(trans by hm-uhamka)