UNAIR NEWS As a part of his public lecture roadshow, Prof. Robert Fry Engle III delivered a lecture in presence of East Java province administration and rectors of universities in Grahadi Palace, Surabaya, Monday, February 20.
The public lecture was attended by East Java governor, Soekarwo, Rector of 51动漫 Prof. Dr. M. Nasih, S.E., M.T., Ak., and dozens of senior high students in Surabaya.
In his presentation, Soekarwo explained about the province titled “East Java Provincial Government Strategy in Encountering High Financial Instability”. Soekarwo said that the province economic growth is above the national growth average which is 5.55 percent and 5.02 percent respectively.
But the economic growth in Indonesia including East Java is affected by other countries growth such as China. Furthermore, there is a protective wave among big countries such as the USA, and the exit of Britain from the European Union.
The slow economic growth is followed with disparities and banking industry also has difficulty to give loans.
Based on the condition, Soekarwo recommended three fiscal policy to Indonesian government, public private partneship (ppp), corporate bond, and new sharia financing model.
He gave an example in Umbulan project which is funded by PPP scheme. The capital needed for the project was suppressed. If the private party provided full funding, clean water project in five regions in East Java would need 7 billion while with PPP scheme it was only 3 billion.
In big companies, fiscal policy applied by the government is to build the infrastructures, reform the bureaucracy and human resources. While for micro and medium sized enterprises, the government provides economic stimulation through low interest loans, below six percent.
Prof. Engle in his presentation said that economic stability is determined by political factor as the political condition in many countries is affected by protective wave as the one Trump implements and the exit of Britain from European Union. And, he has not been able to predict when the economy will be stable.
Prof. Nasih in the different occasion hoped that this visit from 2003 Nobel Laurate for economics can bridge peaceful ideas between the youth especially in East Java.
“We want to inspire especially students, the youth, to work together and contribute towards peace in East Java, said Nasih.
Author: Defrina Sukma S.
Editor: Nuri Hermawan
