Fiscal rule, self-discipline and the state budget
If the government seeks a better balance between fiscal stability and economic growth, adopting a springboard approach is the path forward.
A "springboard" approach to governance could better balance fiscal stability with economic growth in Indonesia, according to a recent discussion. This method emphasizes careful, process-oriented decision-making while maintaining a focus on creating public value.
This stands in contrast to the current "straitjacket" approach, which has been in place since the 1997-1998 Asian Financial Crisis to curb corruption. However, critics argue that this rigid system fails to reward prudent policies and does little to prevent corruption.
The key difference between these approaches lies in the mindset of policymakers. Those under the straitjacket are overly cautious, while those following a springboard approach are more willing to take measured risks. The government's focus on maintaining macroeconomic stability, even at the expense of unrealized economic potential, suggests that adopting a springboard approach could lead to better outcomes.
Written by urgent.news from The Jakarta Post's reporting — not their text. Machine-written — may contain errors; check the original before relying on it.
