Kansel
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Sigh, guess I'm getting another products thenIt won't work here.
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Sigh, guess I'm getting another products thenIt won't work here.
It won't work here.
Our monetary policy since the 2nd term of SBY era has been for stabilization rather than growth, although in the early days of JKW administration Jokowi did try to shifting it to growth but I believe people like ms. Mulyani advised against it. Hopefully it will pay out during this time of crisis because we seriously need stable condition considering our forex reserve.
Sigh, guess I'm getting another products then
Our monetary policy since the 2nd term of SBY era has been for stabilization rather than growth, although in the early days of JKW administration Jokowi did try to shifting it to growth but I believe people like ms. Mulyani advised against it. Hopefully it will pay out during this time of crisis because we seriously need stable condition considering our forex reserve.
Trying to achieve stable economy by sacrificing growth potentials (no major infra projects or economic initiatives) will only get you a temporary stability. This was apparent towards the end of SBY's second terms where neighboring countries stepped up their FDI games. True, the economy was kept relative stable with USD to IDR around 8k to 9k due to relatively lower account deficits and debt , but no major investments were done as well by the government because that might require the country to go into account deficits. Therefore, our true underlying issues that clogs our long term economic growth were never really addressed during SBY's terms: Distribution costs and organic growth from domestic consumption.
I personally believe that the true economic stability is resulted from a constant growth. Take growth away, you will have problems with stability. Corona is a crisis that is not financial in nature, but it could get financial. Indonesia is projected to be least impacted by Covid19 compared to many ASEAN countries, I think partly because we pursued growth oriented economic policies in the last 5 years so there is some domestic consumption left to support the economy so that it could tank the impact of the crisis.
On 1 June, Indonesia's lock down will be eased and people can start working, shop reopening, and so on. Infection rate will likely to surge but government doesnt seem to have any other option rather than start reopening the economy. Something that need to be prepared is the covid 19 treatment capacity that must be increased to cope with this "new normal". Medical staff will have to continue working in a dangerous situation and possibly add their work shift. Government should disburse proper monetary incentive to medical staff who are dealing with Covid 19 patients.
With this reopening, Government look like avoiding disbursing huge economic incentive to ease the lock down effect on the economy. As Indonesia economy is more domestic consumption driven economy, so the coronavirus outbreak economic effect will likely to be much more minimal compared to export driven economy in the region like Malaysia, Thailand, and Singapore.
As other economy like USA, Europe, China, and others are reopening their economy as well, so there is hope that oil price will go up that later help increase other commodity prices. Indonesia export still rely on commodity so the increase of the price will improve our overall export performance that will later affect our trade balance. This somehow will strengthen our Rupiah and give more hope to our ability in curbing the economic crisis effect in the financial sector.
Despite more positive outlook that we can get from reopening the economy, there is still uncertainty haunting us in term of the outcome of the economy reopening in our health sector. More infection and death will likely to happen. I hope we can still curb the infection and death rate with this new normal by implementing social distancing measure. What is truly happening here is that government is buying time until effective drug and vaccine can be available while keep opening the economy to help the vulnerable group survive under this outbreak.
Just like happening in many countries, we are failed to contain the disease and forced to reopen the economy because there is no other option left. I hope people keep being discipline in undergoing this "new normal" so that new infection and death number can still be maintained in a mild rate. School, I hope, will still be closed until effective drug is found and wildly available.
^^^
Yes, that question is valid and in appropriate language.
You do not have to tag me in every post of yours.
Just in case, I am a bit traumatized with how certain mod here acted. So consider this as my disclaimer.