Government Criticised over Unresponsiveness to Economic Slow Down

Liputan6.com, Jakarta - The blatant instability of worldwide economy has caused for many nations to revisit its economic policy and spur day to day efforts to attain restoration. Indonesia counts as one among many that suffers economically from such volatility. Even when crises are inevitable by nature, each country is encouraged to establish anticipation strategy thus that it does not hit rock bottom when the actual crisis strikes.

The Institute for Development of Economics and Finance (INDEF) viewed Indonesian government to be lacking in responsiveness in addressing its economic issues.

INDEF Executive Director, Enny Sri Hartati ponders on the notion which suggests for the government, be it Indonesia or any other country in the world, to mitigate any form of economic volatility as to anticipate the worst possible case scenario.

"Surely each country got their very own 'political economy' which functions as a protector to its nation," Enny said on Monday 24 August 2015. According to Enny, China has made a move of devaluating its currency to spur investment in the midst of uncertainty in the global market.

"China is one example of a responsive nation where it decides to challenge the volatility by preventing any form of mitigation that comes as hindrance to China's economic growth," she added.

Though risky, China has shown its commitment to do whatever it takes to surpass every challenge that presents itself at unexpected time. As for Indonesia, Enny thinks that the country still finds it difficult to move on from the very notion that suggests the fact that its economic slow down is caused by external factors.

"If the government wish to prolong its impeachment and continually pointing finger on factors from outside of the country, then it is almost like it is giving up and just wait for the condition to get better overtime. Why can't Indonesia get the same encouragement like other nations? The U.S signals potentiality of increasing its rate of interest, China sought for mass production and acceleration of infrastructure development to attract investment, whereas in Indonesia, incentives are given only to portfolio," she concluded.

(Akp/Tnt)