Tiara Juwita, Jakarta – The newly inaugurated President of the Republic of Indonesia, Prabowo Subianto, established the National Economic Council in the Red and White Cabinet. The institution, chaired by Luhut Binsar Panjdjaitan, is tasked with providing advice and recommendations to ensure the proper implementation of prioritized economic programs.
Luhut's appointment as Chairman of the National Economic Council was officially decided in Presidential Decree Number 139/P of 2024, stipulated on October 20, 2024. The Institute for Development of Economics and Finance (INDEF), an independent research body that specializes in studying economic and social issues in Indonesia, also responded to the establishment of this institution.
INDEF's Executive Director, Esther Sri Astuti, delivered the response. This lecturer at the Faculty of Economics and Business, Diponegoro University, conveyed several things regarding the National Economic Council related to the potential overlap of functions between institutions.
Esther said that during President Prabowo's term, many new institutions were established to optimize their functions. However, according to Esther, this could potentially lead to these institutions having overlapping functions.
"In the future, DEN functions must be optimized to provide advice, counsel, and policy direction in the Prabowo administration," she said.
Ester gave an example of another body that has the same function as a presidential advisor but has a less-than-ideal function: the Presidential Advisory Council (Watimpres). "So far, there is Watimpres, but it has not functioned optimally because the President does not necessarily listen," she said.
In addition, Esther also said the a need for good coordination between the agency and the Red and White Cabinet Ministries in working on the same programs. On the other hand, Esther also said that with the establishment of the DEN, the work of economists who fill the institution must be harder because of their role as advisors to the President.
In connection with INDEF's response, the Coordinating Ministry for Economic Affairs ensured that the National Economic Council (DEN) formed by President Prabowo Subianto will not have overlapping functions.
Although there is no specific regulation outlining the main duties and functions of the DEN, Susiwijono Moegiarso, Secretary of the Coordinating Ministry for Economic Affairs, said its role is different from that of the institution.
"Oh, yes, no, we coordinate policies that are later implemented for operations," said Susiwijono when he met at his office in Central Jakarta on Monday, October 21, 2024.
Susiwijono said there must be a presidential regulation to outline the duties and functions of DEN. He hopes the regulation will be issued soon. He estimates that the DEN will be tasked with shaping policy for President Prabowo. "Or some kind of policy reference, and so on. We coordinate the technical ministries/agencies," he said.
It is known that Indef is an independent and autonomous research institute established in 1995 in Jakarta. This institution often criticizes government policy measures. Indef has a vision to realize quality economic, financial and development public policies that favor the community. Indef's response to Prabowo's newly established National Economic Council is a form of criticism of government institutions, especially since the body is engaged in the economic sector.
The National Economic Council is actually not a new body. It was first established during the reign of President Abdurahman Wahid. Through Presidential Decree Number 144 of 1999, Gus Dur established the National Economic Council. At that time the National Economic Council had the task of providing advice to the President in an effort to accelerate crisis management and national economic recovery.
"President Prabowo asked us to help make our governance better, because governance with digitalization I think can make us more efficient," he said.
Under President Prabowo, the National Economic Council was tasked with digitizing the national economic system to make it more efficient. The National Economic Council targets the realization of the improvement of economic digitalization in the next 1 to 2 years.
– Tiara Juwita, Ilona Asterina, Nabiila Azzahra A, S. Dian Andryanto