September 9, 2025 | 09:19 pm
TEMPO.CO, Jakarta - The Alliance of Indonesian Economists (Aliansi Ekonom Indonesia) has released seven economic demands addressed to Prabowo's administration. The demands were signed by 384 economists from across Indonesia.
The demands were conveyed in a virtual press conference attended by several economists. Some of the alliance representatives present included Lili Yan Ing, Elan Satriawan, Teuku Riefky, Yose Rizal Damuri, and Wisnu Setiadi Nugroho.
Senior economist Lili Yan Ing said the wave of protests in various regions in the country rings an alarm on current economic and social conditions. "Indonesian economists believe that the state's direction is moving further away from social justice ideals for all Indonesian people," she said in a virtual press conference on Tuesday, September 9, 2025.
According to Lili, as intellectuals, economists have a duty to convey that the government must immediately undertake comprehensive economic policy reforms, ensure inclusive economic growth, create quality job opportunities, and guarantee a decent life for all Indonesian people.
University of Gadjah Mada economist Elan Satriawan added that the current situation is an accumulation of untrustworthy government and inappropriate policy-making. "We see a massive and systemic decline in the quality of life across all walks of life," Elan said.
Elan explained that one indicator of declining quality of life is the comparison between economic growth and real wage growth. From 2010 to 2020, before the Covid-19 pandemic, Indonesia recorded 5.4 percent growth.
Meanwhile, real wage growth during that period was 5.1 percent. However, from 2022 to 2024, the economy grew by 5 percent, but real wage growth was only 1.2 percent. According to Elan, this data reflects that the people are not benefiting from economic growth.
Below are the seven demands from the Alliance of Indonesian Economists addressed to the government:
1. Overhaul misallocation of funds and allocate a reasonable and proportional budget for policies and programs. Economists believe the government needs to reduce the portion of spending for populist programs such as Free Nutritious Meals and restore the Regional Transfer funds to their appropriate portion.
2. Restore independence, transparency, and ensure no intervention based on the interests of specific parties in various state institutions (Bank Indonesia, Central Statistics Agency, House of Representatives, Supreme Court, Constitutional Court, Corruption Eradication Commission, Supreme Audit Agency, Prosecutor's Office), and return state officials to the dignity and functions they shall uphold.
3. Stop state domination that risks weakening local economic activities, including the involvement of Danantara, SOEs, the Indonesian National Armed Forces (TNI), and the National Police, which domination results in a non-competitive market, leading to displacement of local jobs, MSME ecosystems, private sectors, and social capital of the community.
4. Deregulate policies, permits, licenses, and simplify bureaucracy that hinders the creation of a conducive business and investment climate.
5. Prioritize policies that address inequality in various dimensions.
6. Return to evidence-based policies and technocratic processes in policy-making and eradicate populist programs that disrupt fiscal stability and prudence (such as Free Nutritious Meals, Red and White Village Cooperatives, people's schools, downstreaming, energy subsidies and compensations, and Danantara).
7. Improve the quality of institutions, build public trust, and enhance the governance of state officials and democracy, including eradicating conflicts of interest and rent-seeking.
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