Economists call for sustainable economic growth

JAKARTA. The Indonesian Economists Association (ISEI) has urged the government to boost competitiveness as part of efforts to maintain sustainable economic growth.

After a meeting with President Joko "Jokowi" Widodo at the State Palace on Monday, ISEI chairman Muliaman Hadad said the government should maintain the momentum of domestic economy recovery.

"Even amid the global economic downturn, it remains a concern. But the recent situation has improved investor confidence. Of course, we will try to maintain the momentum," he said in Jakarta.

Investment growth and capital efficiency are the key drivers of short- and medium-term economic growth, while investment in human resources maintains sustainable economic growth, said Muliaman, also the chairman of the Financial Services Authority (OJK).

At the meeting, the ISEI proposed three scenarios of economic growth. First, slow growth of 4.8 percent at which Indonesian would need 5.1 percent in investment growth, 1.2 percent capital growth and 1 percent productivity growth.

Second, moderate growth of 5.8 percent at which the country would need 3 percent capital growth and 1.5 percent productivity growth. Third, aggressive growth of 6.4 percent at which 3.3 percent capital growth and 1.8 percent productivity growth would be needed.

"We are talking about an effort to improve efficiency and competitiveness in the economy. How to ensure labor productivity, the role of technology, capital, savings and access to finances so that productivity continues to improve," Muliaman said.

Senior economist Aviliani said Indonesia needed to invest in human resources in the long term, including initiatives to improve skills in science, technology, mathematics and the digit arena.

"There must be a link between human resources and the industry," she said. (Ayomi Amindoni)