Indonesia’s Future at Stake: Economists Push Seven Urgent Economic Demands
Jakarta. More than 1,200 Indonesian economists and professionals have come together under the Indonesian Economists Alliance (Aliansi Ekonom Indonesia) to propose what they call “Seven Urgent Economic Demands” a set of recommendations aimed at guiding the country toward more inclusive, sustainable, and resilient growth.
The recommendations were presented at a Focus Group Discussion (FGD) in Jakarta on Tuesday, opened by B Universe Chairman Enggartiasto Lukita and attended by leading economists, including Lili Yan Ing, Vivi Alatas, Vid Adrison, Martin Siyaranamual, Wisnu Setiadi Nugroho, Titik Anas, Talitha Chairunissa, and Rizki Nauli Siregar.
Lili Yan Ing said the initiative represents 454 economists and 257 economic professionals who have formally endorsed the proposals. “Our contribution today is based on data, facts, and deep analysis. We want to offer solutions that serve the nation’s long-term interests and help the government in making impactful decisions,” she said. “We are not criticizing the government, this is hope. We put our trust in the government to act. Let us alleviate these problems together.”
Seven Urgent Economic Demands
- Fix budget misallocation and ensure spending is proportional and well-targeted.
- Restore independence and transparency of state institutions such as Bank Indonesia, the Supreme Court, the Constitutional Court, the Corruption Eradication Commission (KPK), and the Audit Board (BPK).
- End state dominance through SOEs, military, police, and other entities that suppress competition and crowd out MSMEs and private sector growth.
- Streamline regulations and bureaucracy to foster a more conducive business and investment climate.
- Prioritize policies addressing inequality across multiple dimensions.
- Return to evidence-based policymaking and end populist programs that strain fiscal sustainability, such as Free Nutritious Meals (Makan Bergizi Gratis), Danantara, and broad energy subsidies.
- Strengthen institutional quality and governance, including tackling conflicts of interest, rent-seeking behavior, and restoring meritocracy in public sector appointments.
Economist who presented the declaration, Titik Anas, said these ideas are not about introducing new complexities, but about strengthening what already exists. “Many of the issues are well known. The challenge now is how to monitor, evaluate, and execute policies more effectively for the people’s benefit,” she said.
Urging Structural Reforms
The economists cautioned that while the government has acted to manage short-term pressures, structural reforms remain lacking. Vid Adrison pointed to the fiscal strain caused by populist programs.
“Transfers to regions (TKD) have been cut by around Rp 50 trillion, or 5.6 percent, this year. Next year, it may fall nearly 25 percent,” Vid said. “These reallocations may limit local governments’ ability to sustain growth. It would be better to focus resources on the poorest households.”
Inequality and Opportunity
Former World Bank economist Vivi Alatas stressed the urgency of protecting vulnerable groups and creating fairer opportunities.
“The poor are burdened by high food prices, while young people see gambling searches trending online as a desperate escape,” she said. “If uncertainty is reduced, more domestic and foreign business leaders will be encouraged to invest. This will create opportunities that benefit everyone.”
She also warned that Indonesia’s vision of becoming a high-income nation by 2045 could falter without stronger foundations. “We have to be serious about how to get there,” she said. “Each year, around 850,000 Indonesians graduate from universities, but unemployment among degree-holders in some majors reaches 30 percent.”
Personal Stakes
For some economists, the discussion was deeply personal. Martin Siyaranamual recalled his childhood in North Jakarta to emphasize the human cost of inequality.
“I grew up in Cilincing, so poverty is not an abstract concept for me,” he said. “Many of us carry this restlessness; it keeps us awake at night. Our proposals reflect the voices of those less fortunate.”
Hope, Not Criticism
Despite their concerns, the alliance underscored that their proposals were not meant as a confrontation. “We put our trust in the government to act,” Lili Yan Ing said. “Let us alleviate these problems together.”
The economists believe that by reinforcing institutions, fostering fair competition, and prioritizing the needs of the people, Indonesia can continue on a path toward inclusive and sustainable development.
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