REPUBLIKA.CO.ID, JAKARTA -- Dean Economic Forum of Muhammadiyah Universities in Indonesia stated that national economy in 2016 would still be influenced by global issues. Therefore, need a common strategy of all parties, especially public policy makers, in addressing Indonesian economic condition in the future.

Spokesman for Dean Economics Forum of Muhammadiyah Universities, Mukhaer Pakkanna, said there are four issues that are predicted to influence the national economy. The issues are weakening of world economic growth, uncertainty of policy of the US Federal Reserve, weakening of market absorption of the world, and conditions of global geo-politic.

In that condition, the position of Indonesia's economy was becoming increasingly fragile. To avoid it, the forum recommend strengthening of national production and consumption base.

"The government is expected to focus on developing import substitution-based production, which is oriented to labor-intensive," said Mukhaer.

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Central Statistics Agency (BPS) data showed that proportion of imports of capital goods, raw materials, and auxiliary materials reached 90 percent of the total import of Indonesia. Unfortunately, the government has not really sought to reduce dependence on those products.

It also required strengthening of domestic market base. Strengthening of domestic market would also expand distribution, give certainty of circulation of goods, and provide opportunities for national entrepreneurs to supply the domestic market, including promotion of the use of domestic products.

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