[songyou]

2017, March 20 - 26 --- Tempo

There are no short-cuts to ending economic inequality or disparity. This problem cannot always be addressed through the market mechanism and therefore government intervention is needed. But for this to succeed, it must be done in a way that is consistent and based on sound economic principles. But what we see now is precisely the opposite: the administration of Joko Widodo has fallen for a populist approach, seeing it as a short-cut. The government is now focusing on a popular short-term solution: handouts or subsidies. With its high cost, this type of program is simply not an effective way to narrow the gap between the rich and the poor. Since the New Order, Indonesia?s economic growth has failed to bring prosperity to all. Remember, this economic growth is still dependent on exports of natural resources. Sadly, this type of growth creates inequality. The distribution of added value is concentrated in the hands of the rich. The ability to spur on the economy, especially the local economy, has not been carried out optimally, because the supply chain is relatively short and in general is sourced from other regions, or even from imports.

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