Book Review on Indonesian and International Political Economy, IPB Economics Expert Mentions Potential of Labour Intensive Sector
National economic development still requires the right policy strategy so that Indonesia is not trapped as a middle-income country. Prof Didin S Damanhuri, Professor of Economics at IPB University, explores this more deeply in the launching of his new book “Political Economy of Indonesia and the Nation”.
In the book, published by IPB Press, he introduces the concept of ‘Degrowth’ as an alternative to monetary reform. Prof Didin in his book also proposes replacing the concept of gross domestic product (GDP) to Gross National Happiness (GNH).
The GNH concept invites the government to focus on the people’s economy by exploring the potential of labour-intensive sectors. For example, agribusiness and agro-industry to bridge the need for labour absorption.
“Indonesia’s development orientation needs to focus not only on economic growth by making GDP growth the only standard and measure of success. However, it must also pay attention to the social structure of society,” he explained during the book launch at the Ministry of National Development Planning/Bappenas Building, Monday (20/11).
According to Prof Didin, if economic growth tends to be centred on the middle and upper segments of society, it will result in greater economic inequality among various layers of society. This condition will further deepen social problems in Indonesia.
“This labour-intensive sector can play an important role in efforts to overcome the problem of social inequality, which is one of the factors that can prevent Indonesia from getting out of the middle income trap,” he said.
Prof Arif Satria, Rector of IPB University also appreciated Prof Didin’s productivity in writing books and discussing the same substances consistently. Prof Didin’s explanation related to the reconstruction of the national development paradigm and global politics according to him needs to be discussed eclectically.
“We must continue to support Prof Didin’s spirit to continue to provide constructive offers for the government so that it continues to inspire us all,” he said when attending online.
The seminar and book review also featured Suharso Monoarfa, Minister of National Development Planning/Chief of the National Development Planning Agency (PPN/Bappenas). He also appreciated the ideas contained in the book by Prof Didin.
“All the ideas presented by Prof Damanhuri have succeeded in presenting a new alternative perspective in political-economic development. This is certainly an important note for Bappenas, which has recently been formulating the direction of development policies, both for the long and medium term,” he said.
He reviewed that this book also underlines the potential of labour-intensive sectors. These sectors can play an important role in efforts to overcome the problem of social inequality, which is one of the roots of the middle-income trap.
This event also presented three discussants, namely advisor to the Minister of PPN/Bappenas Fachry Ali, Deputy for Development, Human, Society and Culture of the Ministry of PPN/Bappenas Amich Alhumami and Deputy for Economics of the Ministry of PPN/Bappenas Amalianggar Widyasanti.(MW/Rz) (IAAS/RUM)
