INDONESIAN ECONOMIC POLICY


If we are talking about the Indonesian economy, which will occur in our minds is about the conditions and economic situation in Indonesia. Indonesia Economic conditions can be measured using several indicators, such as national income and Gross Domestic Product (GDP). national income and GDP is high indicates a country's economy vibrant. The Government has various policies to maintain or improve the quality of the first Indonesia.Yang economy is fiscal policy. fiscal policy is a policy related to Income Expenditure Budget (APBN).
 Fiscal policy has a variety of forms. one form of fiscal policy appears BLT. Many people look at BLT only help those less fortunate. actually behind it there is a special purpose from the government. BLT is expected to increase people's income. with rising incomes, increasing purchasing power.
Thus, demand is also increasing. increasing demand from the community will encourage the production, which in turn will improve the economic conditions of Indonesia. Another example of fiscal policy is a project organized by the government. let's say the government entered into a project to build the highway. In this project the government requires workers and other workers to complete.
In other words, this project is to absorb human resources as labor. This makes the income of people working on it increases. with the increase in their income the same effect will happen with the previous BLT. So by holding paroyek the unemployed find a job that will impact the economy of Indonesia. Fiscal policy can also be adjusted with the government budget. for example, by financing the deficit.
                        Defcit financing is to establish a revenue budget>. deficit financing can be done in various ways. Bung Karno's first government ever apply them by multiplying the debt by borrowing from the Bank Indonesia, which happens next is a big inflation (hyper inflation) because the money circulating in the community very much. to close the budget deficit dipinjamlah money from the people. unfortunately, people do not have enough money to lend to the government. In the end, the government was forced to borrow money from outside negeri.Yang we know now that many of Indonesia's debt to foreign countries, which today does not reduce but semakain bertambah.Yang we do not know when the debt has been settled by the Indonesian state.
            The United States also must implement a financing deficit with organizing the project. This project is the normalization sungan Mississippi by the name Tenesse Valley Project. The project is intended to prevent flooding, this project is an example of projects that apply the principle of labor-intensive. With this project, government spending increases, but revenue also rose. eventually this will encourage economic activity in order to become aroused.
            Let us recall a small incident in late 1997 when the monetary crisis in Indonesia. at that time customers in droves to take the money in the bank (bank rush phenomenon) for fear that the banks do not have enough funds to restore their savings. to overcome this problem by public banks were given a loan from Bank Indonesia, called Direct Bank Indonesia (BLBI). At that time, did all the money that is guaranteed by the government, therefore the government should take action as a phenomenon that occurs when a company tadi.seharusnya (including commercial banks) lack of owner's equity must increase their capital in the company. This applies to public and government. if the government short of funds, the government can raise funds by selling shares held by the government. Keep in mind, there are some companies whose shares are owned by the government.
            The second policy is monetary policy. monetary policy is a policy with the aim of influencing the money supply. amount of money in circulation can be affected by Bank Indonesia. In addition to directly increase or reduce the amount of money in circulation, regulate the money supply can also use the BI Rate. BI rate is the instrument of government for future reference how much short-term deposit rates, for example, Securities Indonesia. usually commercial banks will raise or lower interest rates rise or fall according to the BI Rate. Therefore, when the BI Rate is lowered, mortgage rates also fell, so the investment costs down. from here, investment is expected to increase.
            Monetary policy also establishes statutory reserves, namely the amount of deposits commercial banks at Bank Indonesia, which is part of a third party deposits. the current mandatory minimum of 8% from deposit of the third party. Monetary policy was also influential in international trade by controlling the export tariffs on imports. if the increase in import tariffs, the urge to import is reduced. if import tariffs fall, the drive to improve ipmpor and prices of imported goods become more murah.Yang Negara Indonesia sometimes even always prefer to export the goods outside. For in the minds of Indonesian nationals who baarang export goods already in the best without thinking about the side effects for the future.

CONCLUSION

The Government has various policies to maintain or improve the quality of the first Indonesia.Yang economy is fiscal policy. fiscal policy is a policy related to Income Expenditure Budget (APBN). Countries could increase foreign exchange earnings and to meet the needs. The second policy is monetary policy. monetary policy is a policy with the aim of influencing the money supply. Which can increase investment. Hopefully we can all apply this policy to boost the economy in our State of the State of Indonesia.

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