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    Improve the Quality of Economic Growth in 2017


    BANDUNG-government is expected to improve the quality of economic growth in 2017. It was announced by Jazuli at End of Year Reflection and Business Economic Outlook 2017 in Aspiration Room PKS faction Parliament Senayan Jakarta, Wednesday (14/12).

    "PKS faction of Parliament appreciated the hard work of the government, in world economic conditions are unfavorable still able to maintain growth at the rate of 5%. Although we do not turn a blind eye in quality has decreased and it is still far from meeting the growth target of 7% for five years until 2019, "said Chairman of the PKS faction of Parliament, Dr. Jazuli Juwaini, MA in a release received jabarprov.go.id, Friday (16/12).

    In the records of PKS faction Parliament, said Jazuli up to the third quarter 2016, a new national economic growth reached 5.02% by the end of the year predicted to reach 5,037%. Jazuli rates, still below the initial growth target of 5.2% in the State Budget Amendment (APBN-P) 2016.

    "It indicates that by 2016, the growth of the national economy is still stagnant, in other words the government has not worked effectively in guarding the national economy," he said.

    Nevertheless, the PKS faction Parliament also did not want to just limit on growth figures and negligence on the implications for the welfare of all the people of Indonesia. Therefore the record about the quality of growth for people's welfare and poverty reduction is very important to be observed and explored.

    "Unfortunately, based on the assessment of the economic team PKS faction of Parliament, the economic growth is in a inferior position to the record as follows," explained Jazuli.

    First, low economic growth in absorbing labor because many supported by the services sector is minimal employment. Employment is no longer derived from the manufacturing sector and the agricultural sector which is rich in labor-intensive. As a result, the impact on poverty reduction is not significant.

    "Three business field that is recorded the highest growth and boost economic growth over the past two years is not a labor-intensive business fields. Fields that are not labor-intensive businesses are the sector of Information and Communications (9.2%), financial services and insurance (8.83% ) and transport - warehousing (8.2%), "said the Member of Commission I of Indonesia Parliament.

    Second, the structure of the national economy still rests on the power consumption of the household sector, making it is very vulnerable to inflation shocks.

    "The government should be proud, when the general inflation (headline inflation) is quite low. However, the government needs to improve the inflation movement that is the price of goods volatile (volatile), which is well above the general inflation. The main group of contributors to inflation is foodstuffs. Government should already have sniper moves to manage inflation from the supply side (supply side), because inflation has been going on for a long time, "said Jazuli.

    Unfortunately, continued Jazuli, managing more targeted inflation through monetary policy (demand side) that would be counterproductive to the real sector. In operation, as high inflation, the central bank will siphon money away from the economy (especially banking), causing interest rates to come down hard.

    Third, the economic growth forecast for this year of 5.037% decline in open unemployment of 7.56 million people (6.18%) to 7.02 million (5.5%), thus the elasticity of economic growth to job creation is 1% of economic growth to absorb 107.206 workers. The elasticity continues to decline when compared to the elasticity of the previous years, in 2014 elasticity of economic growth to job creation is 1% of economic growth can absorb 260,000 workers, even in 2004 every 1% growth of 400,000 workers.

    "This result is far from the promise of Nawacita President during the campaign that targets creation of jobs for 2 million people per year, so the total is 10 million people over five years of government. Yet this promise is very important to realize to increase welfare as well as declining poverty," he concluded.

    Fourth, with these conditions, it can be said that the massive investment in infrastructure, even absorb all resources, ranging from the state budget, human resources, a government priority in the past two years, was not able to absorb a lot of labor and also become the locomotive of growth economy.

    "14 economic policy packages that have been issued by the government in fact has not been effective pushing the economy into a better direction, one of which related to the implementation of such packages in the region in line with local conditions," he said.

    In fact, continued Jazuli, PKS faction of Parliament assess the package leeway ownership of businesses owned by foreign investors (negative list of investment) could be a "time bomb" for both workers in Indonesia and for the national economy that is mandated by the constitution to be controlled by the state and for the prosperity.

    "As a big country, we should and must give priority to investors and workers in the country, so that they become masters in their own country," he said.

    PKS faction House of Representatives rates, poor performance of the economy, can not be separated from the lack of planning the state budget, especially the tax sector in the last two years. This forced the government to cut the budget of Rp. 133.8 trillion, so as not to cause a budget deficit that exceeds the statutory provisions amounted to 3%. This policy is the second pruning, after the first cuts agreed under the 2016 revised budget of Rp 50.01 trillion.

    "This policy, budget cuts have an impact on the center (Ministry / Agency) amounting to Rp. 65 trillion and delay local budget (transfers to regional and rural funds) amounted to Rp. 68.8 trillion.
    The impact of these cuts, we can be sure will affect the performance of the Central Government and Local Government, "he explained.

    Over all study results Economic Team of PKS faction House of Representatives above, the Government was asked to seriously improve the performance of the economy in 2017 so that more grow in quality. "The government should be able to design a good economic policy and implement it effectively in order to encourage economic engine. The sectors that absorb high labor should receive more serious attention, such as manufacturing, agriculture and plantations, so that the impact of economic growth could be perceived by the public, "Jazuli advices.

    Work hard and smart work should be done because the government's economic challenges ahead are very heavy, especially global economic and political constellation has changed dramatically. Practical Jokowi-JK government havs only one year ahead (2017), in order to improve the performance of the national economy, considering that in 2018-2019 will already be entered in cartilage, where the political temperature started to heat up ahead of the 2019 elections, it is certain that governments will not be able work optimally. 2017 is also not expected to be easy, given the simultaneous implementation of the election will also begin in 2017, Jazuli ending the lid explanation. (NR)

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