According to Keynesian, the GDP from expenditure side is explained as Y = C + I + G + (X-M), where C stands for Consumption, I = investment, G for Government Spending and (X-M) as net export.
Many economist said that Indonesia’s economic growth is led by consumption showed by its share on GDP (61% of GDP, 2008). But it will disturbed along the crisis since the investment (the share on GDP is 8%) is declining and so is net export. Indonesia is the second country in the fall down net export after Rusia.
In this global crisis situation, according to Keynesian, the government spending could be another way out as engine of growth. As we know, the government had given stimulus for about 73,3 billion to make the economy work, 12,1 billion of it is for the infrastructure development.
The rumor said that government will give stimulus package for government employee like remuneration package. They might be hope that this stimulus will run the economy as the whole. But can we rely on this?
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