Economists from Universitas Gadjah Mada (UGM), affiliated with the Equitable Transformation for Alleviating Poverty and Inequality (EQUITAS) Research Cluster at the Faculty of Economics and Business (FEB UGM), together with the Indonesian Economists Alliance (AEI), held a public discussion titled “Seven Urgent Economic Demands” on Friday (Sep. 19) at the Multimedia Room (T-103) FEB UGM. The discussion highlighted the need for strategic measures to address the growing complexity of national economic challenges.
Dr. Sekar Utami Setiastuti, a lecturer at FEB UGM and panelist at the discussion, outlined the seven urgent economic demands conveyed by economists and academics to the government.
First, urging the government to comprehensively address budget misallocation by prioritizing proportional programs and policies.
Second, restoring the independence and transparency of state institutions to free them from external intervention.
Third, ending excessive state dominance that risks weakening the local economy, including the involvement of state-owned enterprises, the military, and the police, which could sideline micro, small, and medium enterprises (MSMEs) as well as the private sector.
The fourth demand emphasized policy deregulation, simplified licensing, and streamlined bureaucracy that often hampers the business and investment climate.
The fifth prioritized addressing inequality in its various dimensions.
The sixth called for a return to evidence-based, technocratic policymaking and the discontinuation of populist programs that could threaten fiscal stability.
Finally, the seventh demand focused on strengthening institutional quality by rebuilding public trust, improving democratic governance, and eradicating practices of conflict of interest and rent-seeking.
“These seven demands represent a collective call from economists for policymakers to take serious action on the economic challenges felt by the people,” said Dr. Setiastuti.
Panelist Dr. Rizki Nauli Siregar, a lecturer and researcher at LPEM Universitas Indonesia, highlighted the issue of low productivity among Indonesian youth.
“More than 25% of young people in Indonesia are unproductive (neither working nor studying), particularly women,” he said.
According to Dr. Siregar, this condition stems from the massive misallocation of resources and the fragility of state institutions, which are caused by conflicts of interest and poor governance.
Dr. Elan Satriawan, a lecturer at FEB UGM, noted that the urgent economic demands could serve as both a reflection and a momentum for stakeholders to strengthen national economic governance.
He emphasized that building fairer, more transparent, and people-centered policy foundations would help realize prosperity aligned with the nation’s ideals of independence, lasting peace, and social justice for all Indonesians.
Author: Kezia Dwina Nathania
Editor: Gusti Grehenson
Post-editor: Rajendra Arya
Photographer: Donnie Trisfian