“The government has been relatively able to maintain fiscal stability. It has succeeded to control fiscal deficit,” economist Firmanzah told Medcom.id on Friday, October 18, 2019.
The economic growth was recorded to be at 5.1 percent in 2014. It declined to 4.88 percent in 2015. Later on, it bounced back up to 5.03 percent in 2016, and again to 5.07 percent and 5.17 percent in 2017 and 2018 respectively.
“If we take a careful look, this year’s economic growth is far from the government’s target. Nonetheless, compared to the global economic growth, we are still able to achieve five percent growth. I think is alright,” he said.
However, according to him, the former World Bank managing director has not brought about significant changes given the global economy slowdown as a result of ongoing US-China trade war.
“The slowing global economy as a result of the ongoing US-China trade war has caused economic uncertainties. At least, we should be able to maintain our national macroeconomic stability,” he said.
He said that the tax amnesty program was the most successful government program in the past five years. The program provided additional state revenues from repatriation funds and helped increase tax ratio.
He hopes that the finance minister in the upcoming cabinet can iniate economic policies to not only maintain fiscal stabiltiy but also to maintain overall macroeconomic stability as well.
“First, the minister must be able to maintain our macroeconomic stability. Second, they must also be able to work together with relevant ministers to initiate progressive economic policies to help domestic businesses without undermining our fiscal aspect,” he added. (Translator: Muhammad Gestinev)