Fiscal policy should foster the creation of a dynamic economic environment

Not only do we benefit from the demographic bonus, but we also face challenges related to the quality of human resources and the labor market, which are above all linked to employment.

Jakarta (ANTARA) – Deputy Finance Minister Suahasil Nazara called for synergy between fiscal policy and the financial sector to create a dynamic economic environment and accelerate recovery.

“Fiscal policy office colleagues should be aware of the relationship between fiscal and financial sector policies on how they can shape a dynamic economic environment,” Nazara remarked at the 10th AIFED 2021, here on Wednesday.

Nazara listed – product, people, place and politics – as four essential aspects of fiscal policy to create a vibrant economic environment and ensure a period of faster recovery.

The product aspect covers the types of products that can potentially encourage new economic growth, facilitate job creation and are included in the green economy.

The second aspect of people concerns the methods and strategies for making the most of the demographic bonus to create new potential capable of promoting economic growth.

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It is also linked to the efforts to face the challenges that can be made by improving the quality of human resources.

“Not only do we benefit from the demographic bonus, but we also face challenges related to the quality of human resources and the labor market which are above all linked to employment,” he said.

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The third aspect is the locus, in which the tax policy should take into account the diversity of regions in Indonesia, for which the imposed policies should also differ accordingly.

For example, infrastructure development policies or employment policies promotion must be adapted to the geographic conditions of each region.

The last aspect is political, which is linked to the ability of tax policy to support job creation and increase citizens’ incomes.

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