Why does the House of Representatives really insist that the Republic of Indonesia print IDR 600 T?



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Jakarta

The Bank of Indonesia (BI) has rejected the proposal of the DPR Budget Board to print Rp 400-600 trillion, which is believed to be able to overcome the crisis due to the Corona virus pandemic (COVID-19). However, the proposal was again voiced by Commissioner XI Mukhamad Misbakhun of the Golkar faction in a heated discussion with former SOE minister Dahlan Iskan.

Quoted from Dahlan’s writings on the disway.id page, Misbakhun revealed the reasons for the Golkar faction that had been unanimous regarding the proposal to print money to BI. According to Misbakhun, his party is very concerned about the recovery of the Indonesian economy due to the attack of the Corona virus (COVID-19).

“Golkar is very concerned about how to rebuild this destroyed economy. Try, who does not agree to print this money? Ask them, what is the way out? Quoted by detikcom, Tuesday (05/12/2020).

According to Misbakhun, his party was determined to continue the proposal to print money. He also believes that Golkar’s proposal has a strong position.

“Very strong. Furthermore, Golkar’s position in government is very strong. Golkar’s President General, Ir. Airlangga Hartarto is the Coordinating Minister for the Economy,” Misbakhun said.

However, according to Dahlan, chairman of the National Committee for Economy and Industry (KEIN), Sutrisno Bachir, who was also present at the discussion, recalled the business scenario behind the proposed money printing.

“Sutrisno Bachir seems to fit the idea of ​​printing money. Perhaps because he is also a successful businessman. He only warned that there could be a business scenario behind money printing,” Dahlan wrote.

In fact, Sutrisno alluded to the Pre-Work Card program that he judged that Golkar defended to a large extent as well.

“The engines are all Golkar. We all know what Golkar is like. Does the one behind the job card prove?” Sutrisno said.

On the same occasion, economists from the Institute for the Development of Economy and Finance (Indef) Prof. Dr. Didik J. Rachbini continued to remind Misbakhun of the risk of high inflation that haunted the proposal to print money. He recalled the history of Indonesia, which had experienced the bitter economic crisis caused by high inflation in 1950.

“That was done once by Finance Minister Syafruddin Prawiranegara of the Masyumi Party. Direct inflation increased by 1000%,” Didik said.

Students also continue to ask that this proposal be rethought in depth.

“I am not saying that the theory conveyed by Pak Misbakhun is wrong. There is nothing right or wrong here. What exists is the risks. What is worse and what is worse,” Didik added.

“In the end, politics will win. Not technocrats,” Didik continued.

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