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Purchasing Power is The Key

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A PRASETYANTOKO
· 5 minutes read
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KOMPAS/ALIF ICHWAN

The 2019 Telkomsel Indonesia International Motor Show (IIMS) exhibition, held at the JIExpo Kemayoran area in Central Jakarta, comes to and end on Sunday (05/05/2019). The exhibition, which took place from April 25 and was organized by Dyandra Promosindo in cooperation with Telkomsel, attracted 425,211 visitors. It also ended with 10,148 sales worth around Rp 3.1 trillion (US$216.80 million).

For the Indonesian economy, which relies heavily on domestic consumption, the people’s purchasing power is the key. In 2018, the proportion of household spending to the economy or gross domestic product (GDP) was 55.74 percent, down from 56.14 percent in the previous year.

In general, from year to year, our economy is dominated by domestic consumption. As a result, we are stuck in a moderate growth pattern. Given the structural condition of the Indonesian economy, there are two big agendas that must receive serious attention. First, in the short term, the people’s purchasing power should be under control through a low inflation rate policy. Second, in the medium and long term, the people’s incomes and purchasing power should also be strengthened through an increase in investment.

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