FINAL ASSIGNMENT ECONOMIC DEVELOPMENT Lecturer : Dr. Yulhendri, S.Pd, M.Si By Rani Rahayu Nengsih (17053098) Economic Education Class ECONOMIC FACULTY UNIVERSITAS NEGERI PADANG 2019 ECONOMIC GROWTH AND INEQUALITY OF INCOME DISTRIBUTION Economic growth is the process of increasing per capita output in the long run. This economic growth is also said to be the process of increasing GNP real or gross national product real. So that this economic growth can describe a person's standard of living from the level of output or income they have spent in decades. Growth is one of the instruments of economic development. This is in accordance with the expression of Adam Smith that development is an income process, two main aspects, namely total output growth and population growth. Not surprisingly, most ordinary people do not care too much about whether or not the economic growth target is achieved, because they know how to live well, free from the shackles of poverty, and get justice in this country, anyway. feel, for what they care about the name of economic growth. Because economic growth only addresses how much output growth or how much PNB is received without questioning the largest source of contribution from the total output received. So it is not surprising if one of the development indicators cannot be used as a reflection of the distribution of income of a country. It is also not surprising, when a country experiences growth, the country will also face the problem of inequality in income distribution, so that the rich the richer the poor the poorer they become. This distribution inequality can be seen from several approaches including through the coefficient of correlation that exists. If the economic growth rate increases but the gini coefficient is also large, this indicates poor economic growth, because it means the biggest contribution of uneven growth or only from the elite group. So that even though a country experiences growth in the economy but does not guarantee inequality does not occur. This imbalance occurs besides being caused because the high gini coefficient is also due to the unfair distribution of national cakes enjoyed by the Indonesian people. Besides this inequality also occurs due to the HDI (human development index) or the level of human development, this can be measured based on the level of literacy, education level, and quality of education. as stated by the deputy chairman of the national economic and industry committee, Arif Budimanta, that "one of the efforts to reduce the level of inequality is to increase the human development index (hdi) because they have mutual correlations". SOURCE OF ECONOMIC INSTALLATION Economic development is a business that must be done to increase national income (gross national product), then divide the national income (GNP) to citizens fairly, the progress of the industrial sector to absorb the high workforce and reduce unemployment and poverty (Todaro, 2004 ) When the national cake is not felt fairly, this is what is called economic inequality, where the economy of the community is lame, and the gap between the poor and the people is increasingly steep. There are many factors or sources of economic inequality based on quotations from the book Yulhendri where there are some factors that cause inequality, namely the first input factor market. The supply of labor is increasing, especially in urban areas that are densely populated, while the available employment is inadequate for all workers so this causes labor wages to decline or be low, limited employment opportunities will result in the emergence of unemployment and slums in urban areas . When the formal sector was unable to accommodate all migrations, it made them look for other alternatives in the informal sector, 58% of which were agriculture, forestry, hunting and fishing, trade, processing industry 6.84%, retail and restaurant 21.77%, transportation, warehousing and 4.82% communication besides that most of the population working in the informal sector are those with low education who only graduate from junior high school and even elementary school. Low educational background with low informal sector workers, of course the income received will also be low. Another source is land ownership that is not merara. Indonesia is a very large area with land spread out of 17 thousand islands. But the problem is the distribution of land that is not evenly distributed and not fair. This is a concern for every government from time to time, especially the current government. Governments in this period were also committed to managing land distribution by issuing policy policies covering agarial reform, accelerating the issuance of certificates of rights to community land, and social forestry (ksp.co.id). Based on sukerenas data which showed that 49% of households only mengola land as much as more than 0.2 hectares. This shows that a portion of Indonesia's population only cultivates land that is not much while most of the land is controlled by conglomerates. With a little land, of course productivity, or the results obtained are not how much while Indonesia is an agrarian country where agriculture is one of the biggest contributors of GDP. Land distribution is the main determinant of income distribution and the extent of poverty (yulhendri,). In addition, the choice of capital also greatly influences the economic inequality of the Indonesian state, increasing the productivity of human resources is determined by education and individual expertise. The level of education of the population and the workforce is the main determinant of the ability of human capital owned by a nation. The success of human development in a country is determined based on the country's HDI (human development index). Based on BPS data, in 2018 Indonesian HDI showed 70.81%, a stagnant number. In 2013 the Indonesian expectations for BPS data showed figures of 70.07 and 94.14 for literacy rates, this needs to be appreciated because the figure shows an increase from the previous year. Although this figure shows an upward trend but still this increase is not very meaningful, because with the Indonesian HDI number 70.81% has not been able to bring Indonesia to move from the rank of 113 out of 188 countries in the world. In addition, based on direct information by CNN Indonesia, UNDP noted that there are around 140 million Indonesians living at less than Rp. 20 thousand per day and 19.4 million people suffering from malnutrition. In addition, UNDP saw that nearly five million children were out of school and children in Papua had high levels of schooling. So it can be concluded that the ability of human capital in Indonesia is still low and this is one of the factors that causes economic inequality because the human resources owned are unproductive and unable to compete, which makes them only able to work in sectors with low income so that the impact on economic inequality. In addition, an equally important factor in terms of income inequality is the well-known Indonesian culture of the absence of a future orientation, quickly giving up and being slow. According to the 1999 report, which I quoted from the yulhendri book, it was stated that among the high and low income groups there was an initiative formed. The phenomenon shows that there is an imbalance in income between low and high income groups of households. Few people but have many assets and many people have few assets. This is the benchmark for economic conditions in this country. GOVERNMENT EFFORTS REDUCE DEVELOPMENT LEVELS Of the many inequalities that occur, the government needs to make efforts to overcome this problem. There are several ways or efforts that can be taken to reduce the development imbalances that occur, namely; 1. Equitable Development of infrastructure Infrastructure is one measure of a country's development, and this infrastructure development is always faced with inequality. At present the development of Indonesia is still concentrated on the island of Java. Indeed this is still reasonable, because Java island is a population center, where the largest population occupies the island of Java. However, even though the infrastructure center is on the island of Java, inequality is still inevitable. For this reason, it is necessary to develop infrastructure that is evenly distributed not only on the island of Java but throughout Indonesia. In this millennial era, technological sophistication cannot be doubted, even in this era life is easier, because the world feels in the grip. The internet is one of the leading icons in this era. But ironically not all regions in Indonesia feel the convenience or benefits of the internet, this is again caused by inadequate infrastructure. infrastructure is an important factor in the progress of a region's development, for example road infrastructure, bridges, and even air and sea transportation. because when infrastructure is adequate and equitable, all forms of activity will be easier. When infrastructure is weak, it will hinder the development of a country and lead to a sense of injustice, for example, the difficulty of the community in obtaining health facilities, or the difficulty of the country's children to attend school because of difficult or expensive terrain constraints. In addition to development inequality, another problem in infrastructure development is that it is not uncommon for development in a region not to bring benefits and provide welfare for the people in the area because the policies set are not in accordance with what is needed by the area (yulhendri). Therefore development equality is one of the efforts made by the government to boost the number of inequality in Indonesia. No exception is the current government. One manifestation of the government's current efforts to flatten infrastructure is the manufacture of trans Papua. Actually, this program is a continuation of the B.J Habibi program which was then resumed massively by the present jokowi dodo government (CNN Indonesia). In addition to this program there are still many other government program programs as a form of infrastructure distribution efforts in Indonesia. 2. Equitable education Human resources is one of the important factors in the growth of a country, the quality of human resources has a correlation with the level of education received, if education is well received then of course the quality of human resources is also good. So that equal distribution of education is one of the important efforts taken to overcome the imbalances that occur in Indonesia. One form of inequality that occurs is poverty. This poverty is an implication of low human human capital, this is because the quality of education received is also low. So that education needs to be done evenly because when education in Indonesia is evenly distributed, the output of growth can be realized. So that efforts to tackle the problem of poverty can be done by building quality human resources through established education. 3. Equitable redistribution of land Only a small part of the land is controlled by about 0.3 hectares of people, this is an indicator of low productivity of farmers because the land they cultivate is small. The probability that land cultivated by large farmers is expected to have implications for the income or income received by farmers also increases. Because land is one factor in the formation of agricultural products (yulhendri). Most land tenure is controlled by the BUMN capital owner (Yulhendri). It can be concluded that the higher the land area controlled by the authorities, the less income will be received by farmers. Low productivity will again lead to inequality, because the ruler will get richer with the output he receives from the land he owns and farmers will also be increasingly destitute of the low productivity due to the limited land they have. RELATIONSHIP BETWEEN THE NUMBER OF POPULATION WITH INCOME DISTRIBUTION The relationship between the population and income distribution is very close, because the population is a factor that determines the distribution of income in a country. There are several factors that cause poor distribution of income in Indonesia, one of which is the increasing number of employment (yulhendri), this increased labor force usually occurs in urban areas because of the greater number of population than in rural areas, because life expectancy is better encourage them to migrate from village to city so that they increase the population in the city. When the population in the city increases, the automatic supply of labor also increases, while the availability of limited employment opportunities results in unemployment and the creation of slums in urban areas. In addition, more than 50% of the migration population works in the informal sector because of the inability of the formal sector to accommodate all existing migration residents. From the explanation above, it is very clear that with a low education background and informal sector employment, the income can also be low. For this reason, the government must also regulate the population, and its distribution, because if not, then there will be a problem like the one above. The population will continue to increase from time to time, there are several factors, one of which is the low level of education. education is one of the determinants of a person's quality of life. If someone has a good education, then surely he will try to get a good quality of life too. So he will use his mind and common sense in doing things and not just obeying lust alone. One example of a problem that becomes a benchmark for someone acting in accordance with reason and mind or according to lust is free association. Not a few young people are caught up in this bad association. Many young people sacrifice their youth for things that are not good. Getting into drugs, getting pregnant outside of marriage, brawls and so on. This is also an important pr government. Because those who do so are also students. This is the question that might have crossed everyone. This is proof that education in Indonesia has not been able to produce educated generations. Education is only a formality of getting a diploma, or just a hereditary tradition, etc. Of the many problems that occur, pregnancy outside marriage is one of the factors that lead to the explosion of the population. Most of those who are pregnant outside of marriage are still underage so that most of them have not been able and have not been able to be mentally or finascially able to become mothers or become a family so the long tail of this problem is the generation that might have made it a generation the same as the previous generation. So basically the number of residents and the quality of the population determines the distribution of income in a country when the population is high but the available employment is limited which may be caused by several factors, one of which is a fixed land factor, this will create problems such as unemployment, creation of slums, crime, and other problems. But this certainly can be overcome by increasing human resources or improving the quality of the population itself through education so that the government does not have to bother regulating the number of residents by limiting the number of children or taking care of the easy generation not to fall prey to negativity but the government need to improve quality education is not just a quantity so that later they themselves will think which is good and what is bad both for themselves and for this country. GROUP / PERSONAL DESIRE OR NATIONAL DESIRE? Group / personal desires or national desires? This is a question that is often asked most favorably to the government elite when it comes to deciding something, especially deciding a policy. In plain view, none of the Indonesian people do not want to see their developed countries free from a circle of problems, especially poverty, including the government. Indonesia has a large population, and each of them must have different thoughts even though they are different but surely their initial goals remain the same namely how to make Indonesia a better country in the future. For that they sent representatives who could represent all of these aspirations so that they were more structured and targeted to achieve these goals. The representative is the government. The government is a person who has been given the trust of the people to coordinate the country and build the country and help this country to escape from various problems, one of which is poverty. But the fact that is happening now is that not a few of those who betrayed tarnish the hopes of the people when they succeeded in perching on the seat of government. Corruptors are a small example of how hearty officials are to revenge the people who have chosen him in hopes of helping him out of various forms of problems in this country. But that does not mean that we look at the work done by the government so far, we need to appreciate the efforts made by the government through policy policies to overcome problems in this country. But the problem is that the government is not consistent with the policies made. Regardless of the change in government, the policies that have also been taken, such as policies in education and the welfare of the population, have changed. This inconsistency has made Indonesia stagnant since the old order government until the present time of reform. Changes that exist are not significant and even tend to remain this because the government is unable to be consistent with the policies that have been made so that it does not provide meaningful benefits to the growth of this country. In addition, not infrequently the policies or decisions taken cannot be separated from the personal interests of some government elite groups, although not all but most are like that, because someone's heart does not know except the owner of the heart, God and the person entrusted with heart. Not infrequently the policies issued by the government are unfair and impressed only to fulfill personal interests. For example the injustice of law enforcement in Indonesia, the law enforced in Indonesia such as rubber law and some say law in Indonesia such as cone which is tapering over this happens because of the importance of interest so that efforts to protect those interests by controlling the law. Law firmly applies only to those ordinary people who do not have certain power and interests but are lackluster laws for those who have certain power and interests. This has become evidence that there are certain personal interests protected above national interests. Whether it's to enrich yourself makes it easier for businesses or interests of other interests / groups. Not a few governments give promises and expressions of expression that seem to care about the people and they take refuge with it, even though in fact they only make it a protector to be able to reap their own profits. The example of the government policy that is not really in the interests of the people is the case of opening mining mines in Indonesia. Instead, it will have a good impact on the surrounding population, but instead give birth to new problems. In fact, the mine is not entirely a good influence for the community, it will bring harm to them. Most of the existing mines are controlled by foreigners. It can be seen from the biggest investors or the biggest contributors to the project coming from outside and Indonesia only as providers. Besides, the people only become unskilled workers in the project. . The project should provide benefits to the community but on the contrary they lose the land that is replaced with labor work which is absolutely nothing with the benefits earned by those foreign and dirty officials. So it is clear, that the policies taken by the government are not entirely for national interests but there are interests of priadi or groups implied in it. Because if indeed the policy is intact only for the interests of the people and the country, then of course there will be a change or improvement in the resolution of the problems that occur. LAND OWNERSHIP IN INDONESIA AND LANDREFORM All natural resources contained in Indonesia are owned by the state but only solely for the prosperity of the people of Indonesia this is in accordance with those stated in article 33 paragraph 3: "The earth and water and natural resources contained therein are controlled by the state and used as much as possible prosperity people". The natural wealth includes land. Land is one component that is included in government supervision. Land has an important meaning for the life of every human being, everyone in his life and even after death needs land, both for agriculture, building, planting forests and for other purposes ( Linda wati sulistiwati dan muhammad adib zain,2014). As explained by Heru Nugroho that the importance of land has multi-dimensional coverage, namely First from the economic side of land is a means of production that brings prosperity. Second, politically, land can determine one's position in community decision making. Third, as cultural capital can determine the high and low social status of the owner. Fourth, land means sacred because at the end of life everyone will return to the land. Based on the description above, it is not surprising that the rulers of the land will do anything to defend their rights and even expand the land they have. For this reason, the government must take part in regulating land ownership in Indonesia, because if not then there will be arbitrariness where the strong and capable can control the vast land as well, or even the exploitation of the land as happened in the colonial period. The rules regarding land ownership in the colonial period contain elements of exploitation and extortion of the rights of the Indonesian people such as "wet agrarianism" which gives erpfacht rights giving large powers to investors to use the land so that there is seizure of the people, as well as domeinverklaring which states "for people those who are unable to prove eigendom rights (property rights) on their land, the land belongs to the state ". So that the rules are corrected and the birth of the legal basis of the nation's rights, namely UUPA (agrarian law) and the LoGA is a form of the landform agenda. This law prioritizes the interests of most of the less fortunate, most of the workers and farmers, in the process of nation-building. However, the implementation is not so, the law that emphasizes sectoral and momentary interests. In addition, there are still cases of the same case during the colonial period where ownership of land owned by them was large capital or power. The government also does not seriously implement this regulation. In addition, another case that shows the injustice of some of the rules made by the government is the case of land ownership, in the latest regulation which allows the authorities to get the right to control the land in the form of thousands of hectares of land for 75 years. This proves that the country's unfairness in giving ownership rights. How about the farmers? Farmers who certainly do not have the power and power either in terms of capital or rank, certainly cannot do anything, they are only given the lure of encouraging people's plantation revitalization credits but the program cannot be accessed by the people to the banks because the people do not have certificates land (yulhendri). In addition, so far the government has not really been serious in realizing this landform in addition to the complicated delivery mechanism, changes in social changes that have taken place in the government have made this landform difficult to realize optimally from the old order to reform. REFERENCE BPS,index pembangunan manusia from https://www.bps.go.id/subject/26/indeks-pembangunan-manusia.html#subjekViewTab3 Perangin-angin,Andria. (2014). Petani Melawan Negara dan Pengusaha Sulistiawati Linda Yanti dan Muhammad Adib Zain. (2013). Tanah Dan Hukum Adat Di Indonesia Timur Todaro, michel P. 2003. Pembangunan Ekonomi,Edisi Indonesia. Jakarta: Erlangga. (alih bahasa : harris munandar) Yulhendri. 2009. Pembangunan Ekonomi Pasar,Struktur Ekonomi,Pendidikan Dan Pengurangan Kemiskinan. Padang: UNP Press Yulhendri. 2013. Pembangunan Modal Manusia Dan Modal Sosial. Jakarta: Lecture Publisher Yuliyanna Fauzi. CNN Indonesia, (2017, 22-3-2017) from https://www.cnnindonesia.com/ekonomi/20170322182446-78-202081/ranking-indekspembangunan-manusia-indonesia-turun-ke-113 Link INA https://osf.io/preprints/inarxiv/sptwn/
