Keberlanjutan Fiskal di Indonesia

Simarmata, Djamester A. (2007): Keberlanjutan Fiskal di Indonesia. Published in: Jurnal Ekonomi Indonesia (Indonesian Economic Journal), No. 1 Juni 2007 No. No. 1, Juni 2007 : pp. 1-24.

Abstract

Abstract: Fiscal sustainability has been a hot topic recently. Both the experiences in the past and the Stability and Growth Pact in the European Union have been playing a great role in the revival of the interest in the issue. The European Pact has triggered the academician to pay more attention to the unique threshold of the budget deficit and the level of debt in terms of GDP for a country aspiring to be the member of the Union. Several countries of the Union have since several years bypassing the rule, provoking objections from other members. Here come the economists to shed light on the subjects, whether the threshold is well-founded or not. Their results show that unique threshold for all countries is not justifiable. Indonesia has experienced a period of very high indebtedness after the 1997 crisis. It is followed by a bitter situation of that situation, even though mow there has been a substantial reduction in the ratio of debt over GDP. But the reduction of ratio was due partly to the appreciation of the Indonesian currency after the time of the severest crisis year. This article uses the advances in this subject to see the Indonesian case. It also arrives at the same conclusion, where sustainability of Indonesian debt will depends on several factors, like the international interest rate, economic growth, the structure of the domestic production. By using different point of view, one could arrive at different level of fiscal sustainability.

• Item Type: MPRA Paper
• English Title: Fiscal Sustainability in Indonesia
• Language: Indonesian
• Keywords: Sustainability; fiscal; domestic product; Indonesia
• Subjects: H - Public Economics > H6 - National Budget, Deficit, and Debt > H62 - Deficit ; Surplus; E - Macroeconomics and Monetary Economics > E6 - Macroeconomic Policy, Macroeconomic Aspects of Public Finance, and General Outlook > E62 - Fiscal Policy; F - International Economics > F3 - International Finance > F34 - International Lending and Debt Problems; H - Public Economics > H6 - National Budget, Deficit, and Debt > H63 - Debt ; Debt Management ; Sovereign Debt

References

Alvarado, C.D., A. Izquierdo, U. Panizza (2004): “Fiscal Sustainability in Emerging Market Countries with an Application to Ecuador”, Inter-American Development Bank Auerbach, A. J., L.J. Kotlikoff (1987): Dynamic Fiscal Policy, Cambridge University Press Bagnai, A. (2004): “Keynesian and Neoclassical Fiscal Sustainability Indicators, with Applications to EMU Member Countries”, Universita degli Studi di Roma “La Sapienza”, Dipartimento di Economia Publica Bank Indonesia, Statistik Ekonomi Keuangan Indonesia, Vol: VIII, No. 1, Januari 2006 Benard, J. (1985), Economie Publique, Economica, Paris BIS "Basel Committee on Banking Supervision," Consultative Document, Januari, (2001) Bank for International Settlement, Basel, Switzerland Bradford, D. F. (2000), Taxation, Wealth, and Saving, The MIT Press, Cambridge, Massachusetts, London, England Buchanan, J.M., M. R. Flowers (1975), The Public Finance. An Introductory Textbook. Richard D. Irwin, Inc. Illinois. Buiter, W.H., (1985),"A guide to public sector debt and deficits", Economic Policy,1, November, pp. 13-79 Buiter W.-Corsetti, G. - Roubini, N., (1993). "Excessive deficits: sense and non-sense in the Treaty of Maastricht", Economic Policy, vol. 16, pp. 57-100 Buti M. and Guidice, G. (2002), " Maastricht's fiscal rules at ten: an assessments", Journal of Common Market Studies, vol. 40, pp. 823-848 Calvo, G., A. Isquierdo, E. Talvi (2003): “Sudden Stops, The Real Exchange Rate, and Fiscal Sustainability: Argentina’s Lessons”, NBER working papers, w9828 Canzoneri and Diba (1999), "The Stability and growth pact: a delicate balance of an albatross?" Empirica, vol. 26, pp 241-258 Croce, E., and H. Juan-Ramon (2003), “Evaluating the sustainability: comparison throughout the country.” Document of work of the IMF 03/145. Washington, DC, the United States: International Monetary Fund. Capros, P., Daniele Meulders (editors) (1997), Budgetary Policy Modelling, Routledge, London, New York Claassen, E.-M. (1996): Global Monetary Economics, Oxford University Press, Oxford Edwards, S. (1989): Real Exchange Rates, Devaluation, and Adjustment, The MIT Press, Cambridge, Massachusetts Eggertsson, Gauti B. (2006), Fiscal Multipliers and Coordination, Federal Reserve Bank of New York, Staff Reports No. 241. Frenkel, J.A., Assaf Razin (1989), Fiscal Policies and the World Economy. The MIT Press, Cambridge, Massachusetts Hillman, A. L. (2003): Public Finance and Public Policy, Cambridge University Press HM Treasury (2002): “Long-Term Public Finance Report: Fiscal Sustainablity”. IMF (2004): “Public Investment and Fiscal Policy” Washington Jha, Raghbendra (1998), Modern Public Economics, Routledge, London and New York Mendoza, E., and P.M. Oviedo. 2003. “Sustainability of the national debt under uncertainty.” Washington, DC, the United States: Inter-American Development Bank Musgrave, R. (1959), The theory of Public Finance, McGraw-Hill Kogakusha Ltd, Tokyo, Auckland, … NBER (1993) Tax Policy and the Economy, MIT Press, Massachusetts Ott, F. O. (2002), The Public Sector in the Global Economy, Edward Edgar, Cheltenham, UK, Northampoton MA, USA Polito, Vito and Mike Wickens (2005): “Measuring Fiscal Sustainability”, Centre for Dynamic Macroeconomic Analysis, Conference Papers. Reinhart, C., K. Rogoff and M. Savastano. (2003). “Intolerance of the debt.” Brookings Papers on Economic Activity 1:1 - 74. Republik Indonesia, Nota Keuangan dan Rancangan Anggaran Pendapatan dan Belanja Negara Tahun Anggaran 2006. Rosen, H.S. (2005): Public Finance, McGraw-Hill International Edition Stiglitz, J.E. (1988): Economics of the Public Sector, WW Norton & Company, New York, London Toder, Eric J. (2005), Tax Expenditures and Tax Reform: Issues and Analysis, The Urban Institute, Washington D.C. UU-RI Nomor 13 tahun 2005 Zodrow, G.R., C.E. MacLure Jr. (1988), Implementing Direct Consumption Taxes ini Developing countries, Working Papers, The World Bank