TUGAS ARTIKEL BAHASA INGGRIS - THE ECONOMICS PRIORITIES TO IMPROVE INDONESIAN ECONOMIC DEVELOPMENT

All countries have alteration in their economic growth rate. They have increasing a little or much rate of economic growth, even, some countries reach negative rate in their economic growth. If a country has big rate in their economic growth, of course they can be a developed country. But, many countries in the world just gain medium rate in their economic growth. If a country has big rate of economic growth, the unemployment will be decreased and people in the country will be prosperously. Number of economic growth has big influence to the country’s life. It relates with inflation, number of unemployment, investors, international trade and etc. Economic growth is development product that is produce by industrial goods and service in a country (Sukirno 423). Therefore, we can learn that the economic growth is total product goods and services in a country which called GDP (Gross Domestic Product).

Every country makes policies to increase their economic growth, such as China. China can reach economic growth above 9% in 2011from above 10% in 2010 (Wong 1). This rate is caused by government’s policies that can manage China’s economic factor. On the other side, China has big development in its international trade so it can encourage China’s economic growth. If we look in Indonesia, last economic growth rate in Indonesia is 6.3%. This number cannot be called big rate, though it has positively rate. But if we look the natural resources and other economic factors in Indonesia, it is not maximized and we can give opinion that Indonesian economic growth is small amount. Thus, in my view, we need a government’s policy which concerns on some economic factors that must be prioritized in order to increase economic growth rate in Indonesia.

Indonesia is one country with the largest population. But we can know, with many people in Indonesia, Indonesia cannot reach big development in economy. The first economic factors that can increase Indonesian economic rate are human resource. The reason is that Indonesian human resources are less qualified. Lack of the human resources in Indonesia can be caused by lack of education which causes simple mindset about their life. Many people in Indonesia cannot assist Economic growth because they are unemployment. Much unemployment is due to poor education. If they have good education rate, I think the unemployment will be decrease. So we need government policy that giving free education up to senior high school level. Because, when the people reach senior high school level, they will have mindset about what the step that must be taken for their life. Besides it government must issue a policy so that people want to be entrepreneur. Government’s policies like training program to be entrepreneur and etc. With the government’s policies about to be entrepreneur and increase education level in Indonesian, I think the economic growth rate can increase maximally.

Second is investment. Definition of investment is expenditures by investor to buy capital goods and equipment to produce the goods and services (Rusdiansyah 72-73). Investors have important role for Indonesian economics. If there are many Investors in Indonesia, The economic growth in Indonesia will reach high rate. But most investors in Indonesia they are come from abroad. So how about the Indonesian investors? Warsito (2012) stated, “Number of local investors that registered in Kustodian Sentra Effect Indonesia (KSEI) until at the time just 344,279 thousand (n.p).”  Some Indonesian investors think if they invest in Indonesia, they will not get benefit greatly. The reason why Indonesian investors go to abroad, they think in abroad economic condition is stable. It is good for they who want to profit. To cause economic growth in Indonesia is high, Indonesia need many investors that invest their capital to Indonesia. Government can enhance domestic investors and foreign investors with many kind methods. Government can promote Indonesia to foreign investors with visiting many countries in the world and then the foreign investors may be interested to invest their capital to Indonesia. To increase domestic investors, Government can give policy about invest empowerment and more introduce that Indonesia has good economic condition in order many Indonesian who will invest in their country will be increase.

When foreign investors will invest in a country, in advance they will look at background condition of the country. They will look about how much minimum wage employee, natural resources, tax management in the country, etc. minimum wage employee can attract the investor. As Diana Wijayanti, UII economic lecturer, argued that 60 percent of the production revenue in company is used to pay the employees (Personal communication, December 19, 2012). Therefore, to gain profit, the investor will choose region that has minimum wage employee. Foreign Investors will choose the country where has a lot of natural resources. Because if they build industry in there, they will not issue much cost for import material from abroad. Then the investors do not like country with high industrial taxes and bad management taxes. Tax is government levies intended to person or groups that give indirect benefit to taxpayer (Rolp & Break 1).  The example about the bad management taxes is corruption, where it can harm many industries.    

From above explanation, it can be concluded that there are two factors that should be further increased by government. First, government should increase the Indonesian human resources. This method comprises of free education and entrepreneurship empowerment. The second method is attracting investor foreign and domestic. Government can give policy about invest empowerment to Indonesian, in order Indonesian investor will increase, and the government can increase control with the management of taxes and management minimum wage employee industries in Indonesia. I think the government should be able to balancing where the factors that must be increased when the government conduct policy about increasing economic growth. Government in increasing economic growth cannot just develop one economic factor, because all factors interrelated. Like when the government decreasing the minimum wage employees, investor who enter Indonesia increase, but employee consumption will be decreased and it is reduce the Indonesian economic growth. 




BIBLIOGRAPHY :

Muqodin. (2002). Taxation in Indonesia. Yogyakarta: Ekonosia.
n.a.(2012, October 4). ADB: Pertumbuhan Indonesia 6,3% pada 2012. Harian Analisa. Retrieved from http://www.analisadaily.com/news/read/2012/10/04/78630/adb_pertumbuhan_indonesia_63_persen_pada_2012/#.UOlKVawyob4

n.a.(2011, June 4). Indonesia Masih Sedikit Investor Pasar Modal. Harian Analisa. Retrieved from http://www.analisadaily.com/news/read/2011/06/04/2719/indonesia_masih_sedikit_jumlah_investor_pasar_modal/#.UNqyoqwyob4
Rusdiyansyah, Yos. (1998). Analisis Makro Bisnis. Jakarta:  Badan Penerbit IPWI.
Sukirno, Sadono. (2012). Makro Ekonomi. Jakarta: Rajawali Pers.

Wijayanti, Diana. (2012). Pengantar Ekonomi. Yogyakarta: Fakultas Ekonomi Akuntansi Universitas Islam Indonesia.

Wong, John. (2012). China’s Economy in Review: Moderate Slowdown in 2011, Still Weaker Growth Prospects for 2012. Retrieved from http://www.eai.nus.edu.sg/BB686.pdf