Where Do We Stand?

Working as a strategic planner whose the main objective is to improve investment realization is not the wisest line of job specifically if you try to correlate this objective with ‘Nationalism – Cinta Tanah Air’ so called prinsip berbangsa. I and my friends, of all people, are fully aware of that from the very moment we step our feet into the office we are currently pledge our loyalty to. In fact, the 'where do we stand' question even has become an inseparable part of our profession and a fundamental footing for us every time we try to play our role.
So, when one or two or three or some classmates or even the teachers from different ministries/agencies questioned our nationalism during the 5-week-joined-pelatihan-dasar-for-CPNS-classes, I found it quite hilarious. There was even this one friend from my class who directly asked me, on the opened forum, “Jadi sekarang makin mudah ya kita ngejual negara?” after I finished my presentation about the newest investment licensing regulation (for those who are curious, google Online Single Submission). I mean, didn’t it ever cross their berpendidikan mind, not even in the slightest, that people in my agency probably used their brain whenever they designed an investment policy? 

Well, I don't even mad while writing this. I am just surprised knowing the fact that there is still our own kind -read: government official species- who thinks that way. So please, instead of daku berkata-kata kasar dan mengabsen isi kebun binatang, allow me to elaborate the answer for this question and hopefully together we can learn from it.

Okay, let’s start this with some math.

Based on our 2018 State Budget Structure, the government revenue in 2018 is IDR 1,894 Trillion while the expenditure reachs up to IDR 2,220 Trillion. Let’s do a simple deduction and there you can find a quite number of deficit (IDR 325.9 Trillion). With these numbers, we are still expected to reach economic growth in the level 5.4 percent, so what does it mean?

It might be quite hard to understand moreover if you come from a non-economic background just like me. But let me try to set the logic in a simple –dummy- way (cmiiw).

Even though deficit on the state budget structure is a common thing and well-anticipated for some cases, it still doesn’t negate the fact that a deficit will affect the welfare of Indonesian people. Lack of money equivalents with expenses limitation. Government won’t be able to execute particular development programs (public services included) or on the other scenario, it would be put on hold. These possibilities, one way or another will surely decelerate economic activities on every level hence the decrease of purchasing ability and of course, the welfare level I’ve mentioned before.

How do we fill the gap then?

By optimizing the tax revenue? It does make sense. In 2018, tax contribution is expected to be around 85.4 percent of the total government revenue (IDR 1.618 Trillion). But we have to bear it in mind that we haven’t been able to complete the tax revenue target since 2008 so, instead of pushing our hopes in vain, it will be more logical to generate economic growth with other potential sectors.

Since 2017 -yeah, this isn't only happening in 2018-, Mr. President has been trying to solve this issue by instructing the line ministries to improve economic growth through export-based-industry and (direct) investment.

Why investment?

Because Investment generates our economic activities by producing new companies, widening the markets, and stimulating competition. Not always about the capital, investment –the foreign ones especially- is also needed because of the advanced technology and the knowledge we, in Indonesia, doesn’t acquire yet. Like it or not, investment has become a solution when it comes to a nation problem since long time ago not only in Indonesia, but for almost every country in the world -you can check US and Singapore investment chart as starter-.

How about ‘menjual aset negara’ dan ‘menghianati bangsa’ then?

Well, my friends, that exactly why we as the government’s representatives are needed for.

Government has the right to set the rules of the game. The highest rule for penanaman modal, for instance, is regulated under UU 25/2007 (Under UUD 45’s mandate of course). Based on this act, we produce more detailed regulations to assure that the goal of agreement between our government and investors solely to increase Indonesian people welfare (Pasal 3 ayat 2). In other words, we won't allow disadvantageous or even harmful agreements to take place.

We can use oil and gas upstream industry investment for the simplest example. We need foreign investors because we don’t have the technology nor the money to mine our gas and oil. However, we all also know that oil and gas are classified as a precious-yet-high-risk natural resource, thus before inviting the investors to join in, the government formulate agreement term and condition very carefully. The profit sharing, the labor, the mechanism, the data searching, the time-length, and other components are fully arranged by us, the government. Even by the end of the contract, we have the right to take back our assets (the used land etc.). As a matter of fact, there are even some cases where investor candidates decide to step back due to the complex conditions we’ve set.

So, I don’t really understand which part exactly it is when people use ‘menjual aset negara’  and ‘menghianati bangsa’ term to rephrase ‘investment’.
I don’t say that direct investment is a zero-risk solution for economic growth. Because like hell there would be one anyway. What I want to highlight is, it is a good thing to bring up an idea or an assumption to show our concern toward our country. But if you want to do so, just please read some relevant information and get your fact straight first.

*Iklan layanan masyarakat ini dipersembahkan oleh the hell I've just written where is my caffeine I need is asap*