Amid the world‘s worsening economic crisis, the Indonesian government needs to carefully plan the injection of scarce domestic capital. Lowering the minimum reserve requirement ratio of commercial banks is one possible option for boosting loan provisions for the real sector, including infrastructure and consumer-driven sectors.
Investments in ports, roads, railways, telecommunication and higher education would be a good way to lay the foundation for a favourable business environment.
The growth of regional economies has proved that a diversified, self-sufficient regional economy with the highest possible local content and distribution is more resistant to external shocks than large, mono-structured units, which produce mainly for export.
Mass-production has proven incapable of adjusting to changing environments and has come faced crises in most indu...