PAPER INDONESIAN ECONOMY

CHAPTER I
INTRODUCTION

A.      Background

Economic growth is the process of changing economic conditions of a country towards a better state for a certain period. Economic growth can be defined as well increase the production capacity of an economy that is realized in the form of increase in national income. Economic growth is often equated with the mean economic development, but the between different understanding. With economic growth there will be economic development. Because with to the economic growth will bring economic development. Many factors affect the rate of economic growth in Indonesia, both  driving factors and inhibiting factors. In the discussion this time we discussed the economy in Indonesia. That the Indonesian economy is experiencing an economic crisis that raises a fairly complicated issue that has made the Indonesian economy to be weak and cause some companies experiencing financial crisis. From the description above, we need to know the economic problems in Indonesia and find solutions to solve economic problems in Indonesia, because we are Indonesian citizens. For that we must understand about the economy in Indonesia which will be discussed in our paper entitled "Economic Issues in Indonesia"

A.      Problem Formulation

1.      How the economic situation in Indonesian?

2.      What are the kinds of economic problems in Indonesian?

3.      What are the factors that cause economic problems in Indonesian?

4.      How to solve economic problems in Indonesia?

5.      What is the Simple Past Perfect tense?

B.       Purpose

1.      Knowing the state of the economy in Indonesian.

2.      Knowing the kind of economic problems in Indonesian.

3.      Knowing the factors of economic problems arose.

4.      Knowing the solution to solve economic problem in Indonesian.

5.      Knowing the sense of simple past perfect tense.

CHAPTER II
DISCUSSION

A.      Economic situation in Indonesia.

Indonesian economy is currently optimistic with increased economic growth and increasing national income. we can see the development and progress in other countries with national income per year Indonesia is able to provide progress. Macro economics is very influential in the current economic growth. Macro economics is very influential in the current economic growth. Economic growth that can be seen with domestic demand still will be main factor in performance of the economy. In addition, exports and imports, and investment also greatly affect the Indonesian economy. In addition, exports and imports, and investment also greatly affect the Indonesian economy.

For example :

INDONESIAN ECONOMY

            Prior to independence Indonesia’s economy was oriented to providing raw materials to the Netherlands. Subsistence agriculture, primarily the production of rice, was the mainstay of most of the population, but the economy also relied on plantation agriculture, including the production of sugar and rubber. Industry was not promoted so as to avoid competing with the Netherlands. The first few decades after independence were marked by economic  mismanagement. The government of President Sukarno focused on unifying the country  politically, not on rebuilding Indonesia’s crumbling infrastructure or improving the economy. In contrast, President Suharto’s “New Order” government gave much more priority to the economy, instituting a series of five-year plans (Repelita) starting in 1969. The aims of Suharto’s economic policy were to expand foreign investment and increase trade. When export revenues from oil declined in the early and mid-1980s, Indonesia was forced to expand other exports. To make these exports more competitive internationally, the government deregulated parts of the economy such as coastal transportation, finance, and banking.

            In mid-1997 an economic crisis developed in Asia when investors lost confidence in certain debt-ladden economies. As the crisis spread to Indonesia, the  value of the Indonesian currency plummeted, which threatened the capacity of the government, banks, and businesses to repay their foreign debts. In October the government negotiated an aid package with the International Monetary Fund (IMF). In exchange for massive loans, Indonesia agreed to implement austerity measures such as reducing government spending and reforming the financial sector. The crisis deepened in 1998 when the IMF halted funds, claiming that the Suharto regime had failed to abide by IMF terms, and as social unrest began to spread. By late May 1998 the economic and social crisis had caused President Suharto to resign. Indonesia was more seriously affected by the Asian economic crisis than were its neighbors. The GDP fell 13.2 percent in 1998 and shrank again in 1999. Nearly half of all corporations were insolvent in 1999, and unemployment increased. After the authoritarian Suharto regime ended, the IMF agreed to resume a multimillion-dollar loan program with the Indonesian government.

B.       The  Kinds of Economic Problems in Indonesia.

Indonesia is a country that is rich. Especially rich in natural resources that are not owned by other countries. But, the utilization of natural resources in Indonesia is not maximized. As we know foreigners who cultivate our natural wealth. That’s just one example of Indonesia’s economic problem. Not only that, there are still some more issues that make Indonesian economy is slow to develop. These are some of the economic problems that we often find in Indonesia:

1.         High Unemployment.

From year to year, the problem of unemployment in Indonesia is increase. There is no perfect solution to overcome the high unemployment until now. Development employment is not enough to reduce unemployment in our country.

2.         Inflation

Inflation or rise in the general price level. Inflation is dangerous because it can cause negative effects such as lowering the level of welfare of the people, worsening income distribution and downs of economic stability.

C.       Factors causing Economic Issues

Economic problems because the fact as below :

1.      Variety of community needs very much, and

2.      Tool for satisfying, relatively limited compared to human needs.

D.      Solution to the economic problems in Indonesia.

We as good citizens should have helped the government in overcoming issues facing ekonoomi being in Indonesia. Because the government could not solve economic problems without help us as a society, here are some ways that we can possibly do to solve economic problems in Indonesia:

1.        Overcoming Unemployment.

Creating employment that can absorb a lot of labor, thereby reducing unemployment. Because unemployment is one of the root causes of proverty in Indonesian.

2.        Removing Corruption

Therefore, corruption is one of the causes of the public service is not running as it should. This is what makes society can not enjoy their rights as citizens as they should. The goverment has run this program, but has yet to be realized properly.

3.        Solution to inflation

a.       monetary policy

·        Politics discounts by raising interest rates so that the amount of money in circulation can be reduced.

·        Politics open market central banks to sell securities to the capital markets to reduce the money of the people and by selling securities the central bank can reduce the development of the money supply so that the money supply can be reduced and the rate of inflation may be lower.

b.     Fiscal Policy

·         Raise taxes. By raising taxes, consumers will reduce the amount of consumption as part of their income to pay taxes, so that decrease money in circulation.

E.       The Past Perfect Tense

The Past Perfect is

Ø  used to express an action in t past which happened before another action in the past.

Ø  Time Signal : Untill, Before, After, Just, When, Already, As soon as.

Ø  For example:

            (+)       He  had written the latter before he went to Lamongan.

            (-)        He  hadn’t written the latter before he went to Lamongan.

            (?)        Did he written the latter before he went to Lamongan.

Sentences Pattern

a.    Affirmative Statement

A-1 Verbal Sentences

Subject	Had	Past Participle (V3)	Object/ Complement
They We I You She He It	Had	cooked arrived	a meal before 10.00

A-2 Nominal Sentences

Subject	Had	Been	Object/ Complement
They We I You She He It	Had	Been	here at 07.00

b. Negative Sentence

B- Verbal Sentence

Subject	Had	Not	Past Participle (V3)	Object/ Complement
They We I You She He It	had	Not	Cooked arrived	a meal before 10.00

B-2 Nominal Sentence

Subject	Had	Not	Been	Object/ Complement
They We I You She He It	Had	Not	Been	Here at 07.00

c. Introgative Statement

C-1 Verbal Sentence

Had	Subject	Past Participle (V3)	Object/ Complement
Had	They We I You She He It	Cooked Arrived	a meal ? before 10.00

C-2 Nominal Sentence

Had	Subject	Been	Object/ Complement
Had	They We I You She He It	Been	a meal ? before 10.00

d. Answer (for Verbal and Nominal Sentece)

Short Answer
Affirmative (+)			Negative (-)
Yes	Subject	Had	No	Subject	Had	Not
Yes	They We I You She He It	had	No	They We I You She He It	Had	Not

e. Statement Question

A . Verbal Sentence 1.    Question word +had +been+complement for asking the subject Question word + had +v3+O  Q                            e.g. Had cooked the meal ? Question word + had+S+been+complement Question word +had+S+V3 2. for asking a non-subject e.g. What had you arrived before 10.00 ?

B. Nominal Sentence 1. for asking the subject e.g. Who had been here at 07.00 ? 2. for asking a non-subject e.g When had you been here ?

CHAPTER III
CLOSING

A.      Conclusion

Economic problems are the most talked about topics in society and the media. In Indonesia there are a lot of economic problems such as high Unemployment and Inflation. Economic problem occurs because the variety of needs society very much, and tools of satisfying the needs relatively limited compared to human needs. Government always trying to eliminate the economic problems in our country, although not all can be done and well realized.

·         The Present Perfect Tense

Used to declare an act committed in the past and the activities completed before another past event. Time information used in the past perfect tense is Untill, Before, After, Just, When, Already, As soon as

·         Formula Past Perfect tense:

(+)  S + Had + V3 + Object.

(-)  S + Had + not + V3 + Object.

(?) Had + S + V3 + Object.

B.       Advice

We as good citizens should have helped the goverment in overcoming the issues facing economic being in Indonesian. Because the government could not solve economic problems Indonesian, without our role as a society. For example, by way of larning ang paying taxes.