The Government seems to have a new designation for Indonesia's economic model. This, according to the statement by President Susilo Bambang Yudhoyono.According to Coordinating Minister Hatta Rajasa, the concept of the Indonesian economy is now called the "Jakarta Consensus'. What is the Jakarta Consensus?
According to Hatta is a new economic model, in which the market became an important part of the economy, but government intervention can not be separated.
"If the Washington Consensus is a hallmark characteristic of a free market, free market where matters relating to Government intervention is almost not there. All delivered to the market mechanism, so the outline. Investment of all kinds. But the real role of big government," explained Hatta, when being met reporters in the office of Coordinating Minister for Economic Affairs, Jakarta, Wednesday (09/08/2010).
Contrary again to the Beijing Consensus, Hatta explained that the greater dominance of government intervention on market mechanisms.
China became one of the examples of countries which focuses on government intervention. "If Beijing Consensus, there was some kind of a state contensus. So heavy to how the country, although in fact he embraces the open market rules," he explained.
If the Jakarta Consensus, it is in the middle, where the market mechanism, it is necessary to make things efficient, but not all delivered to the market. "The government's role remained necessary for social protection is weak," he said.
With this new concept, according to Hatta, will not be too much distortion occurs in the public welfare. For those who can not afford, the government is still able to intervene to protect the rights of a citizen.
He demonstrated how when prices surged, the government can still make price stabilization. Other social protection is done as the Health Insurance, School Operational Assistance (BOS), and various forms of gelontoran funds for other community empowerment.
"That's called the Jakarta Consensus. The Government simply has a role in the Job Pro, Pro Poor, Pro Growth, and Pro Green. These are all different with the market mechanism," he said.
When do the Jakarta Consensus is realized? According to Hatta, the economic system is under way in Indonesia. Affirmations Jakarta Consensus done because after the failure of the crisis in 2008 found that so liberal regulations, regulatory elements of the tight little or no role of state or government.
Markets become bloated or not there is sufficient to regulate market instruments. "As a result the impact of global crisis. That is why the government needs to hand. So in addition to visible hand there are also invisible hand," said Hatta.