Studium Generale: Strengthening Indonesia Economy through Domestic Product Consumption

Oleh UKM Student English Forum

Editor -

BANDUNG, itb.ac.id - With a noble purpose to make ITB students be able to develop their compassion for nation, ITB again carried out the fourth Studium Generale on Saturday (19/02/11) at Auditorium of Sasana Budaya Ganesha (Sabuga). This time Studium Generale presented Indonesia Vice Minister of Financial Affair, Dr. Anny Ratnawati as the guest speaker. She delivered public lecture themed "Update Indonesia Economy and Fiscal Policy in State Budget".

Anny began her outline by mentioning criteria of a big country; they are high economic growth, low inflation rate, small amount of unemployment, and evenly-spread society income. "And I believe that Indonesia will manage to be a great country one day," said Anny.

Nevertheless, Anny revealed that currently the world economic growth is still dominated by emerging market countries. Indonesia itself has indeed been able to augment its economic growth to 6.1% level in 2010, but the largest economic growth still being sustained from industrial, trade, and service sector.

Other sector which underwent significant economic growth are mining sector. Although it's a good indicator, Anny cited that mining is non-renewable. "When these resources run out, then Indonesia must purchase from foreign countries in which the price is more expensive," she said.


Meanwhile, inflation becomes another indicator that determines direction of the nation's durability. "When the demand increase, while the supply is dwindling, then we have inflation," she explained. This increased price will also affect the rise of interest rate. High interest rate will burden the economic growth in the end.

Prioritize Domestic Production

The most concerned issue from high economic growth in Indonesia is that the growth of agriculture and cattle sector is still low. "Whereas, if we want our economic growth keep increasing, these sectors must contribute in form of huge economic growth," she mentioned.

From various elaborations she has delivered in the lecture, Anny emphasized Indonesia people to consume domestic product. "Extol the dignity of Indonesia. Making realize a big country must begin from ourselves," she added.


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