UNAIR NEWS – The flagging global economy has affected a lot of countries, Indonesia was one of them. Even so, Indonesia should be grateful as it did not affect too badly at the country’s economy. It was stated by the Head of Policy Analysis and Harmonization, Ministry of Finance, Dr. Luky Alfirman in his public lecture ‘Kebijakan Fiskal Terkini (Latest Fiscal Policy)’ in Fajar Notonagoro Hall, FEB UNAIR, Wednesday, March 30.
“Indonesian fundamentals of economy were quite strong, so the effects of rising interest rate of the advanced countries didn’t affect negatively to us,” he said optimistically.
He emphasized that Indonesian people purchasing ability is getting better. It can be seen from the inflation data in 2015 which was only 3.35%, declining from 8.36 % in 2014 and 8.38 in 2013.
Besides spreading optimism regarding national economy, Lucky also highlighted fiscal spending on fuel subsidies allocated for other sector which needs funds. In his opinion, APBN allocated for fuel subsidies is misplaced.
“Subsidies are for middle and low class community, the fact showed that luxurious cars’ owners also enjoyed the subsidies,” he said while saying that in 2014, 18 % of APBN was spent for fuel subsidies.
But, he also admitted that to fully end fuel subsidies is not an easy task.
“Everytime it is raised, there are strikes. How can we end?” said the man who also teaches in UI.
In the occasion, Luky also emphasized the importance of reallocation of APBN fund for fuel subsidies to other sectors such as infrastructures. The quality of Indonesian infrastructures is far behind the other countries and Luky believes it needs serious attention. (*)
Author : Dylan Salsabila
Editor : Yeano Andhika