The survey conducted by UNESCAP recommends that all fiscal stimulus and all monetary support packages that have been set by the government must be continued, UN Resident Coordinator in Indonesia Valerie Julliand stated during a hybrid public discussion organized by the Institute for Development of Economics and Finance (INDEF) here on Wednesday.
Julliand said that current global conditions do not allow the Indonesian government to remove all the stimulus and subsidies that have been given, especially in essential sectors, such as health, education, and social protection.
She noted that the Asia Pacific is one of the fastest growing regions in the world in recent decades. However, this growth has not been evenly distributed and has not been enjoyed by all regions.
Based on data, 829 million informal workers worldwide are affected by the COVID-19 pandemic, 71 million children do not have access to online learning, and an additional 85 million people are trapped in extreme poverty during the pandemic.
"Hence, the UNESCAP survey actually reminds us that we need to conduct development more fairly, especially for these groups," she affirmed.
Julliand pressed for more investment in the industrial sector as the only way to close the gap. To this end, the government needs to get income through a tax system that works optimally.
There must be a tax system where people pay taxes fairly and any kind of tax avoidance is one of the challenges that must be addressed, she emphasized.
She said that people-centric fiscal policies and banking policies were needed to realize sustainable development. Indonesia's vision to become a developed country by 2045 is laudable, though it should note that not all regions in the Asia-Pacific region are seeking structural economic transformation.
"The fact is that development can be sustainable if it is conducted in an inclusive manner. If it is not done inclusively, then there will be no sustainable development. What is the point of development if most of the population is still left behind? What does high GDP mean if the people are poor?” Julliand stressed.
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Translator: Katriana
Editor: Rahmad Nasution
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