WELCOME REMARKS
Although the poverty rate has decreased from 33% at the end of 1998 to around 16% in 2004, the open unemployment rate tends to increase from the pre-crisis situation. There are several explanations why even though the rate of economic growth is improving, this does not result in an adequate increase in employment opportunities, including because the source of improvement in economic growth generally comes from public consumption, not from increasing economic capacity. As a result, the creation of new jobs tends to only maintain existing jobs.
This article also describes two approaches to look at the causes of slowing economic growth during the post-crisis period as well as an explanation of the use of simple growth accounting equations to estimate the Indonesian economy in the medium term (2005-2009).
The challenge of returning to the rate of economic growth that occurred in the 80s is not easy, because there are several obstacles that hinder the path to the desired development. To clarify the desired direction of growth, the author puts forward several microeconomic reform agendas with the aim of restoring Indonesia's economic growth.
Jakarta, April 11, 2005
Mohamad Ikhsan
