The government and all stakeholders must work in unison as in "total football" [the tactical strategy of players filling any position on the pitch] to address the global impact on the national economy.
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The government and all stakeholders must work in unison as in "total football" [the tactical strategy of players filling any position on the pitch] to address the global impact on the national economy.
The impact of global pressure on the Indonesian economy is reflected in the 2019 State Budget (APBN), which shows a decline in tax revenue and a widening budget deficit.
Due to heavy external pressures, mainly as a result of the US-China trade war that shows no signs ending, all stakeholders – from the government to businesspeople and to the public – must work together to maintain our economic growth. Barriers based on partisan interests must be replaced by a work ethic based on shared responsibilities.
Our exports still depend on seasonal commodities with prices that are influenced by the condition of the global economy. Therefore, the task that must be completed is to develop the country’s manufacturers and basic industries.
Efforts have been made to open new markets through not just the Trade Ministry, but also the Foreign Ministry. We hope that these new markets, especially the growing African market, can become export destinations for Indonesia.
If we export, we must also be willing to import so that global trade grows and is mutually beneficial, and towards developing domestic products. We can reduce importing foods like sugar, salt, fruits and vegetables by increasing domestic production. Imports can be reduced immediately using the simple and effective technology produced by Indonesian researchers, as long as all sides work for the common good.
Financial assistance for the poor should also be encouraged for spending on local products, especially locally produced foods.
Increasing household, corporate and government spending through the state budget is the quickest way to boost domestic consumption. The APBN, which is under pressure, can still provide stimulus if it meets the spending target. Spending on domestic products should be encouraged in the APBN and regional budget (APBD). Financial assistance for the poor should also be encouraged for spending on local products, especially locally produced foods.Regional heads have an important role in ensuring that their APBN allocations are spent at the local level. The village funds scheme is very useful for helping to grow micro, small and medium enterprises. For example, billionaire and philanthropist Bill Gates is helping to eradicate poverty in Africa by funding chicken farms for poor households.
There is potential for growing many more domestic businesses. But to do this, an example from the top is needed. The President has called on us all to pursue modest lifestyles. Institutional leaders have issued circulars for officials to not show off their wealth.
In difficult conditions, government leaders, community leaders and business leaders need to empathize with the people’s difficulties by adopting ascetic behavior and refraining from displaying wealth and luxury.