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Jakarta, CNBC Indonesia – For 2 consecutive days, the former Minister of State-Owned Companies (SOE) for the period 2010-2014, Dahlan Iskan wrote about printing money on the blog https://www.disway.id/ personal.
Dahlan previously wrote an article titled “Big Money.” In the article, Dahlan spoke about the debate on money printing policies in response to the current difficult situation because the Indonesian economy was affected by the outbreak of the coronavirus (Covid-19).
The initial narrative of money printing was made by Senyan politicians. This then turned into a speech, then turned into a serious conversation in parliament (DPR).
Is there anything that makes the printed speech of money so serious in parliament? While the monetary authority, the Bank of Indonesia, has repeatedly stated that it will not carry out a policy of printing money in the literal sense.
BI Governor Perry Warjiyo said central banks around the world have the authority to print money to increase liquidity called Modern Monetary Theory (MMT). However, this method is considered too risky because later, if conditions improve again, it will be difficult to absorb again when the circulating liquidity is too large.
“The essence is different. If the impression of the money that the central bank adds to the money in circulation but cannot later if the excess liquidity, for example next year, the excess liquidity, then it cannot absorb more,” he said. Perry through teleconference, Thursday (04/30/2020).
Obviously, this is the monetary policy attitude of the monetary authority. But the results may be different if the political process continues in the DPR.
It is possible to print money because there is pressure and policies produced by Senayan politicians. All rightDahlan in today’s brief, titled “Lots of Money,” again discussed the issue of print policy.
Money Much
This must be taken into account. Mukhamad Misbakhun has managed to convince internal Golkar. In addition, he also managed to convince other factions in the DPR.
DPR is unanimous behind it.
You haven’t won the next “battle”. Still heavy. Very heavy. Heavier Versus experienced technocrats: Sri Mulyani. Which is an American PhD from a leading university.
He also served as executive director of the World Bank. Then elected as the best finance minister in the world. Even two presidents trust him as finance minister. He is superior to legendary finance minister Ali Wardhana.
In the ranks of the technocrats was Perry Warjiyo, the governor of the central bank. Who is also a graduate doctorate of America. With 30 years of experience in the management of state financial policies.
But DPR is very unanimous in printing money.
I don’t know who members of the DPR in other factions can compensate for Misbakhun’s intelligence, in internal discussions in the DPR. Why so smooth?
I can’t imagine if there was a scientific dialogue in the DPR forum at the time. Before they finally unanimously supported the idea of printing money from Golkar.
So how exciting is the next debate: between the political field and the technocratic field. Between printing money or debt, if someone wants to pay it with cheap interest.
Misbakhun recognized the excitement of the debate. “The difficult thing is not to play,” he said. It was not counted how many meetings there were: the debate. Day and night.
Misbakhun enthusiastically portrays the excitement of these discussions, until I feel like I don’t have the heart to describe them in this document.
The difficulty of the discussion, according to Misbakhun, is related to the lack of courage in financial sector officials. Both the Ministry and the Bank of Indonesia.
“I really understand. There are two types of trauma now,” Misbakhun said. “Personal trauma and institutional trauma,” he said.
The personal trauma, Misbakhun said, was with Finance Minister Sri Mulyani. In the case of Century Bank first. The institutional trauma is at the Bank of Indonesia. Also by Century Bank. The Misbakhun is the driving force behind the problem.
At the Bank of Indonesia, senior officials went to prison. Some even had a prolonged stroke, and eventually died.
But Misbakhun was amazed by his fear. Also frustrated
“Although the House of Representatives is now totally in favor of the government. Still, they don’t dare to make decisions,” Misbakhun said.
Misbakhun will continue to insist. He was not entirely dazzled by the educational backgrounds of the technocrats.
Misbakhun knows this. He is a local product. High school is at SMAN 1 Pasuruan. Then enter D3 in STAN (State College of Accountancy). He then worked in the tax office, until he was very close to the Director General of Taxes, at that time, Hadi Purnomo.
Misbakhun dared to resign from the officials. Being an entrepreneur: seaweed business in Pasuruan. Then get into politics: become a Member of Parliament for the Prosper Justice Party.
By becoming a member of the DPR, Misbakhun was the ultimate. He became a promoter of the special committee investigating the Century Bank case.
The investigation tragically ended in him: he went to prison. Two years.
His company was accused of receiving a Century Bank line of credit, not a tax problem as it was written on DI’s Way yesterday.
It was in prison that he could really read the Koran very often. Every two days they have finished. For those two years.
Later he filed a PK with the Supreme Court. Granted. He is pure free. All allegations are considered unproven. But Misbakhun was already mistreated. In Indonesia, such should be accepted as the destination. Including also his fate: fired from PKS. You cannot, for example, sue the Prosecutor’s Office.
While he was so busy, Misbakhun studied economics for a degree in accounting. At the University of Trisakti, Jakarta.
Misbakhun also obtained a master’s degree in law. At Gadjah Mada University, Yogyakarta, while never backing down, continues to explore economic and financial issues.
And finally anchored in Golkar. Chosen again for the DPR – in the 2014 elections. From the same electoral area – Pasuruan-Probolinggo.
He also rejoined Commission XI at DPR, which is a partner in the Ministry of Finance.
Then he met Sri Mulyani again.
CLBK –Ci Luk Ba Hate happens.
Oh, no.
“I am very loyal to the government. Including, of course, the Minister of Finance,” he said first after his inauguration as a member of the DPR. That is because Golkar is part of the government.
“In fact, I also claim to be a very lucky person. I can work alongside the best finance ministers in the world. That means we are among the best in the world,” he said.
But the main loyalty, of course, remains in his own idea: printing money. As the sole source of large funds. To rebuild the economy. What was destroyed by Covid-19, which has actually been unstable since before.
Misbakhun clearly illustrates where the instability lies. Including the occurrence of deficit in four main sectors at the same time.
Misbakhun was at the top of his thinking: printing money like his broom. He claimed to have explored other options. Everything is uglier and worse. “I know that printing money is not good. But other options are even worse,” he said.
For example, the topic of inflation. He knew that printing money would cause inflation. “But don’t make the bad effects of printing money in 1956 an argument,” he said. “Also, it also mentions Zimbabwe,” he added.
According to Misbakhun, our current economic scale cannot be compared with 1956. Especially with Zimbabwe.
“In fact there will be inflation,” he said. “But if you can calculate the increase in inflation, you can prepare the mitigation,” he said.
“This country cannot be destroyed,” said Misbakhun.
Is it not possible to find a compromise? So that the president not only has to choose the two options?
“Compromise is not possible. It will only produce half measures,” Misbakhun said. “The current problem is too serious to solve by half measure,” he added.
Misbakhun is in fact a militant. Daring to leave as a Tax Office official is one example. Struggling to uncover the Century Bank case is another example.
He is the son of a poor man. From town. Studying at STAN was due to a scholarship. Search for free. He was actually accepted to the best university in the country. “But my parents couldn’t afford it,” he said.
The father has already passed away. But her mother is still healthy. Still living in villages in remote Pasuruan. In Manik Rejo Village, Rejoso district.
It is empty.
Hard to compromise.
It is like Sunni and Shi’a.
But we still have the president. The one we choose ourselves. (Dahlan Iskan)
…
Tomorrow: where the printed money is planned to flow.
(hps / hps)
