Delete the Problems on Development and Economic Growth Indonesia

CHAPTER I

Introduction

About 10 years ago, during the reign of Alm. K.H. Abdurrahman Wahid and Megawati, in Indonesia’s economy are very bad. It then calculated the price of cheap goods. With the money 100 rupiah we are able to buy snacks and ice. But, the economy is experiencing chaos reign. It was described in the website KOMAHI UMY that when KH Abdurrahman Wahid to lead, he earned his cabinet that failure after inconsistent often be changed so that the government is unstable and result in the State of Indonesia’s economy worsened because government is more preoccupied with the order of the people who sit in the cabinet rather than the State’s economy. As a result, he was dismissed from his post as president. After that, the position of President Megawati Soekarno occupied by President. But the reality of the Indonesian economy worse off. According to the website KOMAHI UMY, Megawati has sold some state assets to pay foreign debts. However, debt stills piling up due to State revenue from the various assets that had been lost and the state revenue to be greatly reduced. Finally, the position of Megawati as president was terminated. In the reign of Susilo Bambang Yudhoyono, Indonesia’s economy began to improve. During his reign, fuel prices decreased 2 times. It’s got a very positive response from the people of Indonesia. He is also applying the elimination corruption in Indonesia. But not yet be stated explicitly. There are still many criminals are rampant, and not arrested.()

According http://www.bps.go.id / getfile.php economic growth in Indonesia in 2009 reached 4.5%. Economic growth in Indonesia can be said to slow due to lack of participation from government and society in economic development of Indonesia. Both are very busy with their affairs. Even they blaming with each other. Society blames the government for not incompetent to handle the economy of Indonesia. According to them, the government with their own wishes to make policies that does not fit their expectations. One of them raises fuel prices which increased the prices of other goods. On the one hand, the government said that unruly society. The government made the policy because to solve fuel shortage caused by the exploitation of natural resources is not limited by certain rogue elements of society. In the process, economic growth in line with economic growth.()

CHAPTER II

Discussion

Economic development is a process of increase in total revenue and income per capita, taking into account the existence of population increase and be accompanied by fundamental changes in economic structure a State and equal distribution of income for residents of a State. Economic Development encourages economic growth, and vice versa expedites economic growth economic process. Economic growth is the process of increasing production capacity of an economy is realized in the form of increased national income. A State is said to have economic growth when an increase in real GNP in that State. The existence of economic growth is an indication of the success of economic development.
There are several factors that affect the economic growth of economic factors and noneconomic factors. Economic factors are the natural resources, human resources, capital resources, and expertise or entrepreneurship. While noneconomic factors are the social conditions that exist in the community culture, political situation, institutional, and systems that develop and apply. (http://id.m.wikipedia.org/wiki/pembangunan_ekonomi)

According to Michael P. Todaro, high or low the progress of development measured by GNP growth which will create jobs so that economic growth will be uneven. So the rate of economic growth is the most preferred element and cause problems such as poverty and unemployment are ruled out. So that construction is not uniform. This needs to be handled by the government for the people of Indonesia can live in prosperity. There are poverty eradication, employment expansion, dealing with income inequality and other communities. Currently, although Indonesia’s economic growth increased, but still many are unemployed. Proven often found beggars at every red light, markets, and other public places. They chose to live as beggars because they earn income if work is not worth the work. They work hard but they get little income. They think that begging will make money without working hard enough. This is one example and the result of people’s income inequality. To solve economic problems, the government took steps using the MSME (Micro Small and Medium Enterprises). Adinda said that the MSME sector is one of considerable role in building the economy of Indonesia. In the current global economic crisis has engulfed today, both struck at the international business circles and business circles in Indonesia, the MSME sector can be a “safety valve” for unemployed workers not to. MSME has been the source of life than most of the people of Indonesia. In addition, this business group also has proven capable of contributing significantly to the formation of gross domestic product (GDP) and exports. In 2007, the contribution of MSME to GDP stood at 53.6 percent or worth 2121 trillion rupiah. While the contribution to total export value reached 142.8 trillion rupiah or 20 percent of total exports. Currently, MSME in Indonesia there are more than 49.8 million units of business and labor can absorb more than 91.8 million people. This means more than 97.3 percent of job creation is the contribution of MSME. (http://adindaademustami.tumblr.com)

MSME create jobs for the people of Indonesia. The development of MSME makes people do not need trouble making a living to meet the needs of everyday life. A housewife could double by opening a small business at home. For example, the open food stalls, grocery shops, tailoring, business and other cakes. From start a small business can develop into big business. Apart from housewives, students can live it. Such as selling pulses, into an MLM company (for example Sophie Martin, Oriflamme, Tupperware). The role of Small and Medium Enterprises (MSME) as a provider of employment is no doubt. It is evidenced by the success of those who undergo MSME. MSME can overcome the problem of poverty, unemployment, and increasing job creation. Therefore, MSME are very instrumental in the development process and economic growth in Indonesia. Indonesia’s economic problems will be solved gradually and eventually hopefully the people of Indonesia’s economy will flatten.

  1. A.    Conclusion

Economic problems experienced by people of Indonesia from ancient times until now still cannot be destroyed. They are poverty, unemployment, income inequality and other communities. In each administration, each who served as president of Indonesia, always trying to improve the economy of Indonesia. Although it sometimes not in accordance with the outcome. Even create new problems. Development conducted by the Indonesian government in line with economic growth of Indonesian society. Economic development is the process of increasing total revenue and income per capita, taking into account the existence of population increase and be accompanied by fundamental changes in the economic structure of a State and the equal distribution of income for residents of a State. Economic Development encourages economic growth, and vice versa expedites economic growth economic process. Economic growth is the process of increasing production capacity of an economy is realized in the form of increased national income. A State is said to have economic growth when an increase in real GNP in that State. The existence of economic growth is an indication of the success of economic development. We have seen that economic growth in Indonesia in 2009 reached 4.5%. This is because the government has made every effort for Indonesia’s economy is stable. One of them is a step of MSME. MSME are micro, small and medium enterprises. MSME contribute significantly to the development and growth of the Indonesian economy. MSME can overcome unemployment as full employment for the people who really need and not hard to live it.

REFERENSION

http://www.bps.go.id / getfile.php

http://id.m.wikipedia.org/wiki/pembangunan_ekonomi

http://adindaademustami.tumblr.com

Todaro, Michael P.Pembangunan Ekonomi di Dunia Ketiga. Jakarta: Erlangga, 1998.

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