Indonesia Economists Alliance Warns on Misallocation, Urges Action on Seven Demands
Jakarta. The Indonesian Economists Alliance on Tuesday welcomed the government’s openness to dialogue but stressed that stronger action is needed to address its “Seven Urgent Economic Demands.”
“We see this willingness to engage as a good start, but so far there has been no major breakthrough,” said Rizki Nauli Siregar, a member of the alliance. “That is why we continue to support the seven demands, given the pressing need for solutions.”
Rizki noted that the government’s latest stimulus package provides “temporary relief” and partially aligns with the alliance’s recommendations, but emphasized the importance of deeper, structural policies. “Some measures are in the right direction, but they do not yet resolve the scale of the economic challenges we face.”
She also underlined the need for evidence-based, technocratic policies in boosting state revenues. “The real question is how to encourage people and businesses to comply with taxes sustainably, not just to chase short-term targets.”
On spending priorities, Rizki pointed to concerns over budget allocations, particularly the government’s nutritious meal program, which absorbs a significant share of the education budget. The program’s budget stands at Rp 171 trillion ($10.7 billion) for 2025 and is projected to nearly double to Rp 335 trillion ($20.9 billion) in 2026.
“Human capital investment is crucial, but the question is whether these funds are being used in the most effective way,” she said. “The key is not the size of the budget but whether it’s being deployed to meet the right priorities.”
Looking ahead, Rizki emphasized that Indonesia’s long-term vision requires integrity and responsible governance. “In uncertain global conditions and with challenges like climate change, Indonesia must remain committed to fairness and accountability at every level to achieve its 2045 goals.”
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