Intense Vice Presidential Debate, Here's the Response from UMM Economist

Author : Humas | Saturday, December 23, 2023 04:33 WIB

Setyo Wahyu, Lecturer at the Department of Development Economics, UMM (Photo : Special)

Three vice presidential candidates presented their ideas and thoughts in the 2024 presidential debate held on December 22, focusing on various themes such as people's economy, digital economy, finance, investment, taxation, trade, management of the state budget, and contributions to infrastructure development and urban areas. This debate also served as an optimistic platform for the Nusantara Capital City (IKN) project and an open stage for the promises of the proposed programs.

In response, Setyo Wahyu, a lecturer at the Department of Development Economics, Faculty of Economics and Business (FEB) UMM, shared his views. Beginning with Muhaimin Iskandar's emphasis on fiscal development priorities involving private investment, particularly in plans for developing 40 cities at Jakarta's level, Setyo suggested that regional distribution should be consistent and require precise targeting. Specifically, fiscal policy utilization in the form of fiscal expenditure through measurable investment strengthening is essential.

"In the short term, physical development can boost economic activities through infrastructure investment in specific regions and their surrounding areas, promoting interregional trade and job creation. Prioritizing fiscal fund allocation with precise targets, planned, measurable, and performance evaluation requirements is also crucial," he explained.

Setyo also commented on the term SGIE (State of the Global Islamic Economy), which heated up the debate. According to him, SGIE signifies Indonesia's courage and positive leaps in developing the country's Islamic economy, particularly in sectors like modest fashion, Islamic finance, and Muslim-friendly travel. However, other sectors, such as food, media recreation, pharmaceuticals, and cosmetics, are considered insufficient in the global market.

He also touched upon Gibran's points about sustainable quality economic growth and IKN, highlighting the role of young people in the economy. Setyo explained that economic migration involves population, humans, and other economic factors like capital, labour, and technology.

"Moreover, Indonesia is currently experiencing a demographic bonus of the productive age. Hence, it is expected to encourage the use of science and technology as a prerequisite for technological advancement in the economy," he added.

He agreed that accelerating the economy with the presence of IKN would attract new investors contributing to the development, operation, and commercialization of the IKN region. For instance, sparking economic growth creates central economic zones and accelerates the core capital area. In the future, urban fringe areas will also feel the impact of economic acceleration, characterized by supporting the core area.

In that debate, Setyo also paid attention to Prof. Mahfud MD, who outlined the leading programs of the third-ranked presidential candidate. These programs aim to create economic security by generating employment opportunities, improving the standard of living, prioritizing health, strengthening education for families in poverty, gender equality, and disabilities, and enhancing the quality of labour and SMEs.

Finally, Setyo assessed that each of the three vice presidential candidates possesses individual capacities, as reflected in their respective visions and missions. These encompass fields like law, health, prosperity, and more. The 2024 election is intriguing due to the dominance of a productive age demographic in society with extensive knowledge and digital skills. This aspect is expected to facilitate the public in choosing leaders in the 2024 election who align with the conscience of the Indonesian people. (*/Wil/Fajr)

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