Government Must Cut Spending to Reach Targeted Economic Growth: Faisal

TEMPO.CO, THURSDAY, 25 FEBRUARY, 2016 | 10:34 WIB

TEMPO.CO, Jakarta – Economist Faisal Basri has suggested the government to cut its spending in 2016 State Budget (APBN) to help in achieving the target of economic growth of 5.3 percent.

“There’s no other way, spending must be cut. However, it doesn’t mean that planned projects should be canceled,” he said in Jakarta, Wednesday evening, February 24, 2016.

The total state budget in 2016 State Budget is Rp2,095.7 trillion, an increase from 2015 Revised State Budget (APBNP) of Rp1,984.1 trillion.

Therefore, the lecturer of Economy and Business Faculty of University of Indonesia went on, SOEs must be encouraged to fund temselves, among others by issuing their own bonds.

“So Indonesian government won’t need to issue bonds,” he said.

As an example, he said, PT Pelabuhan Indonesia III (Persero) had done it before by issuing bonds worth Rp9 trillion-Rp10 trillion to fund seaport project.

In mid-2016, PT Angkasa Pura II (Persero) or AP II will also issue bonds worth Rp2 trillion to fund company capital expenditure in 2016 which is around Rp11 trillion.

“As a consequences, the project must be attractive; if not, the bonds will not be sold out,” said the economist.

He also added that the government can not rely on tax amnesty which bill is still being deliberated in the House of Representatives.

Asked about the economic growth of 5.3 percent targeted by the government, Basri is pesimistic that it could be achieved. Even after what he had suggested, he projected that the 2016 economic growth would be at a maximum of 5.2 percent.

“Economic growth of 2016 will be better than in 2015; even though it would be lower than the government’s target, it would still be higher than the IMF’s estimate,” said Basri.

ANTARA

Source: http://en.tempo.co/read/news/2016/02/25/056748115/Govt-Must-Cut-Spending-to-Reach-Targeted-Economic-Growth-Faisal

 

About faisal basri

Faisal Basri is currently senior lecturer at the Faculty of Economics, University of Indonesia and Chief of Advisory Board of Indonesia Research & Strategic Analysis (IRSA). His area of expertise and discipline covers Economics, Political Economy, and Economic Development. His prior engagement includes Economic Adviser to the President of Republic of Indonesia on economic affairs (2000); Head of the Department of Economics and Development Studies, Faculty of Economics at the University of Indonesia (1995-98); and Director of Institute for Economic and Social Research at the Faculty of Economics at the University of Indonesia (1993-1995), the Commissioner of the Supervisory Commission for Business Competition (2000-2006); Rector, Perbanas Business School (1999-2003). He was the founder of the National Mandate Party where he was served in the Party as the first Secretary General and then the Deputy Chairman responsible for research and development. He quit the Party in January 2001. He has actively been involved in several NGOs, among others is The Indonesian Movement. Faisal Basri was educated at the Faculty of Economics of the University of Indonesia where he received his BA in 1985 and graduated with an MA in economics from Vanderbilt University, USA, in 1988.
This entry was posted in Fiscal Policy, Makroekonomi, News, Public Policy. Bookmark the permalink.

8 Responses to Government Must Cut Spending to Reach Targeted Economic Growth: Faisal

  1. bakso lover says:

    Kemarin dapat surat cinta dari pajak…ada yang dapat surat cinta juga dari pajak?….pph ps 4(2) omset jualan 1% pajaknya harus naik dari tahun kemarin walaupunn usaha sepi..kalau ngak mau kena jurus rajawali ngepreeeet

  2. Hari says:

    Kurang setuju pak cut spending
    Harusnya di expand government spending
    2008 2009 Obama kasih stimulus 787 billion untuk stimulus economy

    • faisal basri says:

      Kita beda dengan US. Mereka menutup defisit dengan utang dan utangnya laku keras dan boleh berutang di atas 60 persen PDB dan boleh defisit di atas 3 persen. Undang-undang keuangan kita cuma boleh defisit maksimum 3 persen dan utang maksimum 60mpersen dari PDB.

      Kalau kita berutang bunganya tinggi.

      Insya Allah saya akan menulis tentang potong spending ini.

      Terima kasih banyak

      • Hari says:

        Itulan policy
        Roosevelt bikin new deal kalau dihitung
        Hutang government lebih dari 200 percent,tetap dilakukan karena
        Fungsinya government adalag mengovern citizen
        Effect dari new deal kan terasa sampai Sekarang hubungan antara kota
        Lebih cepat
        Ongkos distribusi jadi lebih murah

      • faisal basri says:

        ya beda sekali. Kalau kita keluarkan utang terlalu besar, siapa yang beli? Mau bangkrut seperti Argentina dan Brazil?

  3. dede kebumen jateng says:

    Kayaknya di tahun kera ini sungokong bakal mengamuk menghancurkan investasi rupiah ,minyak ,emas,saham ,pemerintah&properti cepat atau lambat.dimulai dari cina menyebar ke malaysia,singapura,turki ,timur tenggah,brasil ,argentina.kayaknya loh berdasarkan mimpiku.kw kw kw kwkwkw

  4. Hari says:

    Solusinya diverifikasi utang pak supaya seperti ori
    Kalau kasus Argentina Dan brasil kan sun
    Dipegang sama big institution
    Kalau ori kan dipegang sama smal institution
    Kalau suku bunga lebih tinggi ngk papa kan untuk ori yg beli kan pensiunan atau rakyat biasa

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