Change In Policy To Accelerate Economic Growth: INDEF

Jakarta, April 3 (Antara) - The Institute for Development of Economics and Finance (INDEF) suggested the next regime to come out of the forthcoming elections should change the economic policy to accelerate growth. Indonesia could chalk up an economic growth of at least 7 percent in 2019 provided that the new regime change its economic policy. The country will hold legislative election on April 9 to be followed with presidential election in July. Consistency in policy, strong commitment and synergy between sectors or institutions and between the center and the regions are vital to guarantee growth and reach the target, INDEF director Enny Sri Hartati said here on Wednesday. Enny said there are four factors that need to be seriously addressed in order to reach the target by the end of the next presidential term in 2019 . The four factors are food security, energy security, acceleration in infrastructure development and surplus in foreign trade. "Food production could be increased with farm business management, innovation of institutions and agricultural inputs, allocation of state budget fund to promote the capacity of farming people and tight control of conversion of farm lands," she said. She said energy security could be improved by limiting ownership of private cars , efficiency in oil fuel and expansion of public transport. Acceleration of development of infrastructure could be carried out by prioritizing development of agricultural and maritime infrastructure and create certainty in availability of land for infrastructure projects, she said. "Fundamental steps to cut trade deficit is by controlling imports of oil fuels , boosting exports and increasing commodity value by accelerating development of downstream industries," she added. Unless the government comes out with a fundamental strategy and policy, Indonesia will remain ensnared in middle income trap, she said. INDEF predicted that inflation could be pressed down to as low as 4 percent on-year, with tax ratio at 20 percent and open unemployment at 3 percent if the next government succeed in taking advantage of the good momentum in the next five years. Last year, the country recorded an economic growth of 5.78 percent with trade deficit at US$4.06 billion.