According to Basri, one key measure to safeguard the national economy is encouraging fiscal spending to stimulate demand.
"When we were young, we were taught that being frugal leads to wealth. But in economic recovery, it is spending that drives recovery. When people spend, demand rises," he said at an event titled "Dynamics and Current Developments in the World: Geopolitics, Security, and Global Economy" on Sunday.
He explained that increased demand encourages businesses to boost production and absorb more labor.
However, he also noted that efforts to stimulate demand must be guided by well-defined priorities, given the country's limited fiscal space.
"In my view, we should prioritize sectors with high multiplier effects, especially those that create jobs. For example, tourism — because it has strong backward and forward linkages," Basri added.
He also underlined the importance of social protection programs to reinforce household purchasing power.
Purchasing power, he said, has already shown signs of weakening — even before disruptions caused by Trump’s economic policies.
One contributing factor is the larger proportion of informal workers compared to formal ones, with the former typically earning lower wages.
"That’s why social protection is crucial. Whether it's direct cash assistance, the Family Hope Program, or the Free Nutritious Meals initiative — these programs help strengthen purchasing power," Basri stated.
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Translator: Imamatul, Kenzu
Editor: Anton Santoso
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