Does Economic Policy Package Able to Excite Investment Climate?
Does Economic Policy Package Able to Excite Investment Climate?
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JAKARTA - A month has passed in 2016, businessman breath looks increasingly struggling as out of breath doing business. Effects of the economic slowdown as well as the purchasing power of people to make business and investment climate is difficult to rise.
Began this February, some manufacturing industries started falling. PT Panasonic closed its factory in Cikarang, West Java and Pasuruan, East Java. In addition to Panasonic, Toshiba Indonesia PT also shut down the factory.
Indonesian goverment as told Vice President, Jusuf Kalla denied that workers in a number of foreign companies in Indonesia were laid off because of the weakening national economy. He said on Friday that such a trend was only seen in certain economic sectors, such as mining.
"Such corporate action was taken not because economy is weakening. Our market is still quite good in certain aspects. The retrenchments did not happen only because of the economy," he said.
Citing an example, he referred to a case in the mining sector where many workers have been laid off following a drop in the commodity prices in the sector. It made purchase of heavy equipment and transportation vehicles also to go down.
"Similar is the case with the closure of Ford because its sales were low while generally its products are used in mining areas. That is why the buying power had dropped," he said.
So, how exactly the analysis of the investment climate and its relation to economic policy package that run by Jokowi-JK administration from the standpoint of economic analysis? Consider the following exposures:
ECONOMIC POLICY PACKAGE AND INVESTMENT CLIMATE IN THE MIDLE OF SLOWING NATIONAL ECONOMIC FLOW
Since hold the mandate to be the number one in Indonesia, as it is known by its slogan "Work..Work and Work" also works together with the Cabinet of the President Jokowi has sought to fulfill the promises and work hard for the welfare of Indonesia. Started a major step on the Moon in August 2015, that the cabinet reshuffle, followed by various Economic Policy Package Phase I to Phase VI which basically encourages economic growth in Indonesia.
Indonesian people looked forward to the changes for the better direction, the Jokowi-JK government. In the era of the SBY President, the government was faced with a situation of world oil prices are likely to rise, had the budget assumptions in the 106 USD per barrel. While in the era of Jokowi-JK world oil prices tend to go down, even below the range of 32 USD per barrel, the lowest over the last 12 years.
The tendency of world oil prices will continue to fall at the beginning of the Jokowi-JK has been seen by many observers who mention it as a blessing. Utilizing the blessing of the downward trend in world oil prices. The main point of observation is the direction of government policy Jokowi-JK will be pro-growth or pro slowdown. But precisely many strange policy, such as raising fuel prices for the people of Indonesia amid the downward trend in world oil prices, although then eventually corrected. Maintaining high interest rates BI Rate at that time, the tax revenue target is very high giving a sign of government favor of the economic slowdown, and it was evident by the declining rate of economic growth in Indonesia. The government late seize opportunities and blessings of declining oil prices.
Various stages of the Economic Policy Package I to VI confirms the change of policy direction Jokowi-JK government, towards pro-growth. Although it has made changes, of course, the effect of these policies is not such legerdemain, immediately became a reality, at least take between 1-2 years in the future the impact began to be seen.
Policy evaluation should always be done, for example, it would be nice if the Indonesian government to analyze carefully what the likely cause of the decline in world oil prices, in order to determine the best policy. Is the decline in world oil prices is as a result of market mechanisms were reasonable, the law of supply and demand, or because of a global conspiracy to overthrow the regime of a State, where this time Indonesia stands, because now we are no longer a state exporter but has become a net import of oil, So it will get the most appropriate formula for the people and nation of Indonesia, issues related to oil prices.
BI Rate cut into fresh air for the industry players in the country, although once again the interest rate of bank loans is not necessarily declining rapidly, as did the various policies in the tax sector, does not necessarily make the taxpayers, especially the corporate world could breathe easily for a variety of lacing as the effects of previous policy or implementation of potential exploration in the field of tax, the rules on regional minimum wage (UMR), competition with foreign workers and foreign capital is then entered as without control have made their businesses destroyed.
Foreign ownership to land and property at some point it will marginalize the people of Indonesia, some cases as a result of the revaluation of assets, raising the tax object selling value (NJOP) in the end makes the landowner is not productive, wider in strategic areas cannot afford to pay the tax bill and eventually had to relinquish ownership. Worse that can accommodate is foreign.
For the last note, linked to the issue of capital construction, excavation of the domestic capital should be optimized, so it is not completely dependent on foreigners. It is a matter of self-reliance and self-esteem as a nation, as well as optimizing the role of national banks, both conventional and Islamic banking as well as mediating institutions. Promote a strong capital market as a source of capital, business development and not merely an alternative investment, to be able to drive the State's economy, would all require hard work from all parties to make it happen.
The government is supposed to be able to utilize the natural resources and human resources in Indonesia, because a lot of evidence from countries that have been developed to optimize the competitiveness of human resources. For this matter we should clean remarkable, ranging from system governance, recruitment both at central and local levels, one of which boils down to the quality of education is character.
Besides, various policies will not work optimally if had no efficiency both in the private sector especially in the government, realizing the clean government and authority will give credence investment flows into Indonesia, so it would be conducive investment climate. Come together to improve themselves and improve the Indonesia, by improving the competitiveness and efficiency of human resources.
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-1453984896
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-1453984896
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-14539848
Began this February, some manufacturing industries started falling. PT Panasonic closed its factory in Cikarang, West Java and Pasuruan, East Java. In addition to Panasonic, Toshiba Indonesia PT also shut down the factory.
Indonesian goverment as told Vice President, Jusuf Kalla denied that workers in a number of foreign companies in Indonesia were laid off because of the weakening national economy. He said on Friday that such a trend was only seen in certain economic sectors, such as mining.
"Such corporate action was taken not because economy is weakening. Our market is still quite good in certain aspects. The retrenchments did not happen only because of the economy," he said.
Citing an example, he referred to a case in the mining sector where many workers have been laid off following a drop in the commodity prices in the sector. It made purchase of heavy equipment and transportation vehicles also to go down.
"Similar is the case with the closure of Ford because its sales were low while generally its products are used in mining areas. That is why the buying power had dropped," he said.
So, how exactly the analysis of the investment climate and its relation to economic policy package that run by Jokowi-JK administration from the standpoint of economic analysis? Consider the following exposures:
ECONOMIC POLICY PACKAGE AND INVESTMENT CLIMATE IN THE MIDLE OF SLOWING NATIONAL ECONOMIC FLOW
Since hold the mandate to be the number one in Indonesia, as it is known by its slogan "Work..Work and Work" also works together with the Cabinet of the President Jokowi has sought to fulfill the promises and work hard for the welfare of Indonesia. Started a major step on the Moon in August 2015, that the cabinet reshuffle, followed by various Economic Policy Package Phase I to Phase VI which basically encourages economic growth in Indonesia.
Indonesian people looked forward to the changes for the better direction, the Jokowi-JK government. In the era of the SBY President, the government was faced with a situation of world oil prices are likely to rise, had the budget assumptions in the 106 USD per barrel. While in the era of Jokowi-JK world oil prices tend to go down, even below the range of 32 USD per barrel, the lowest over the last 12 years.
The tendency of world oil prices will continue to fall at the beginning of the Jokowi-JK has been seen by many observers who mention it as a blessing. Utilizing the blessing of the downward trend in world oil prices. The main point of observation is the direction of government policy Jokowi-JK will be pro-growth or pro slowdown. But precisely many strange policy, such as raising fuel prices for the people of Indonesia amid the downward trend in world oil prices, although then eventually corrected. Maintaining high interest rates BI Rate at that time, the tax revenue target is very high giving a sign of government favor of the economic slowdown, and it was evident by the declining rate of economic growth in Indonesia. The government late seize opportunities and blessings of declining oil prices.
Various stages of the Economic Policy Package I to VI confirms the change of policy direction Jokowi-JK government, towards pro-growth. Although it has made changes, of course, the effect of these policies is not such legerdemain, immediately became a reality, at least take between 1-2 years in the future the impact began to be seen.
Policy evaluation should always be done, for example, it would be nice if the Indonesian government to analyze carefully what the likely cause of the decline in world oil prices, in order to determine the best policy. Is the decline in world oil prices is as a result of market mechanisms were reasonable, the law of supply and demand, or because of a global conspiracy to overthrow the regime of a State, where this time Indonesia stands, because now we are no longer a state exporter but has become a net import of oil, So it will get the most appropriate formula for the people and nation of Indonesia, issues related to oil prices.
BI Rate cut into fresh air for the industry players in the country, although once again the interest rate of bank loans is not necessarily declining rapidly, as did the various policies in the tax sector, does not necessarily make the taxpayers, especially the corporate world could breathe easily for a variety of lacing as the effects of previous policy or implementation of potential exploration in the field of tax, the rules on regional minimum wage (UMR), competition with foreign workers and foreign capital is then entered as without control have made their businesses destroyed.
Foreign ownership to land and property at some point it will marginalize the people of Indonesia, some cases as a result of the revaluation of assets, raising the tax object selling value (NJOP) in the end makes the landowner is not productive, wider in strategic areas cannot afford to pay the tax bill and eventually had to relinquish ownership. Worse that can accommodate is foreign.
For the last note, linked to the issue of capital construction, excavation of the domestic capital should be optimized, so it is not completely dependent on foreigners. It is a matter of self-reliance and self-esteem as a nation, as well as optimizing the role of national banks, both conventional and Islamic banking as well as mediating institutions. Promote a strong capital market as a source of capital, business development and not merely an alternative investment, to be able to drive the State's economy, would all require hard work from all parties to make it happen.
The government is supposed to be able to utilize the natural resources and human resources in Indonesia, because a lot of evidence from countries that have been developed to optimize the competitiveness of human resources. For this matter we should clean remarkable, ranging from system governance, recruitment both at central and local levels, one of which boils down to the quality of education is character.
Besides, various policies will not work optimally if had no efficiency both in the private sector especially in the government, realizing the clean government and authority will give credence investment flows into Indonesia, so it would be conducive investment climate. Come together to improve themselves and improve the Indonesia, by improving the competitiveness and efficiency of human resources.
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-1453984896
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-1453984896
Hery Gunawan Muhamad
Stock Market Observers
Head of the Yogyakarta Branch and PIC Sharia Division PT First Asia Capital
Postgraduate student FIAI, UII Yogyakarta
source: http://en.sindonews.com/read/1081002/196/nationalism-in-capital-market-after-thamrin-sarinah-bomb-terror-14539848
(rnz)
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