CITA criticizes IMF investment proposal for Indonesia Emas 2045 vision

Jakarta, Thekabarnews.com—The Center of Indonesia Taxation Analysis (CITA) criticized a recent report from the International Monetary Fund (IMF). The report says Indonesia needs to spend more on public projects if it wants to become a developed country by 2045.

The IMF report talks about a macroeconomic situation that could help Indonesia reach its goal of “Indonesia Emas 2045.” Their vision is to spend more on public services in honor of 100 years of independence. However, CITA says that the proposal misses an important point. It doesn’t include everyone.

The CITA head, Fajry Akbar, says that the framework doesn’t say which social groups would benefit the most from faster economic growth. Therefore, it is important for us to determine who truly benefits from growth.

“Not everyone will benefit equally from an economy that is growing,” he said.

Fajry says that policies that rely too much on raising taxes or putting more stress on the budget could hurt Indonesia’s middle class more than other groups. 

He said that many middle-class families are already struggling because the cost of living is going up. Additionally, there aren’t enough homes, and the job market is unstable.

The IMF report talks about tax cuts and fiscal expansion. However, Fajry said that these ideas could cause social unrest in the real world if policymakers don’t think about what people want and how the economy is doing. 

“People think the middle class is strong, but they are weak when policies make their lives harder,” he said.

CITA said that Indonesia’s Emas 2045 will need more than just big plans for its money to reach its goal. When policymakers make plans for growth, they should put fairness, social mobility, and broad-based prosperity at the top of their list.

Many economists believe that the government should pay for things like schools, roads, and businesses. However, people still haven’t found a way to pay for this kind of growth while keeping things affordable.

As Indonesia’s 100th birthday approaches, there will likely be more arguments about how to share wealth, change the tax system, and keep the economy growing. People believe that the right balance of ambition and inclusion will decide if economic growth is good for everyone.