THE IMPACT OF GLOBAL FINANCIAL CRISIS ON POVERTY AND UNEMPLOYMENT IN INDONESIA
| Main Author: | Carunia Mulya Firdausy |
|---|---|
| Format: | Article eJournal |
| Bahasa: | eng |
| Terbitan: |
Jurnal Ekonomi
, 2012
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| Subjects: | |
| Online Access: |
http://journal.tarumanagara.ac.id/index.php/FE/article/view/1072 |
Daftar Isi:
- The Global Financial Crisis (GFC) that happened in 2008 has given a relatively mild impact on the Indonesian economy. The growth rate in 2009 has been able to be maintained at 4.3 per cent, displaying a more resilient response than some of its neighboring countries. At least there are three possible explanations advanced in the literature for the relatively mild impact of the GFC on the Indonesian economy. The first is due to the fact of the structure of the Indonesian economy which is less closely connected to the global economy than those of neighboring countries, particularly Singapore and Malaysia. The second is due to the favorable impact of government's fiscal policy and central bank policy responses. The third relates to the stimulatory impact of the general election spending by the government, as well as that by the political parties, and the candidates themselves that are able to boosting consumption expenditure of the people. The objective of this paper is to examine the impact of GFC on the incidence of poverty and unemployment in Indonesia. Using the secondary data published by the Central Board of Statistics and the National Planning Board, it was found inter alia that the GFC has made the set of quantitative social-economic targets which have to be reached in 2009 were missed out. The economic growth, for instance, was never reached the 7 per cent target in 2009. Similarly, the incidence of poverty and unemployment in 2009 were far from 8-10 percent and 5-6 per cent respectively. Thus, much remain to be done.