Universitas Gadjah Mada
Faculty of Economics and Business

The Faculty of Economics and Business (FEB) of Universitas Gadjah Mada (UGM), through the Center for Equitable Transformation for Alleviating Poverty and Inequality Studies (EQUITAS), organized a Seminar and Public Lecture (SinarKU) titled "The Effect of Fiscal Rules on Long-Term Growth" at the Pertamina Tower Auditorium, 6th floor, FEB UGM, on Tuesday, October 22, 2024. The keynote speaker at the seminar was Agustin Samano Penaloza, Ph.D., a research economist from the World Bank Group.

In his presentation, Mr. Samano Penaloza discussed his research on fiscal policy and its impact on economic growth. He explained how effective fiscal policy can be in promoting long-term financial stability. Using case studies from several countries, Agustin emphasized the importance of sustainable fiscal policies in encouraging private investment and preventing future economic downturns. He also stressed the importance of prioritizing public investment in infrastructure and social programs to increase productivity and economic growth, even when government spending is constrained.

The seminar was well received by students, faculty, and the general public, who hoped to gain new insights into the appropriate fiscal policies for Indonesia's economic future. The event gave participants a deeper understanding of how fiscal policy affects long-term financial stability and its implications for Indonesia's economic development.

Dr. Gunawan, a lecturer at the Department of Economics, FEB UGM, served as the moderator and introduced Indonesia's fiscal path over the past decade, focusing mainly on the country's accumulated debt. He also highlighted the critical issue for participants to consider - whether the increase in public debt benefits Indonesia's long-term economic growth or poses risks to future financial stability.

The event concluded with Gumilang Aryo Sahadewo, S.E., M.A., Ph.D., FEB UGM's Vice Dean for Research, Community Service, Cooperation and Alumni, presenting Agustin with a souvenir as a token of appreciation for his comprehensive and insightful presentation. The seminar will give participants new insights on implementing sound fiscal rules to promote sustainable economic growth.

The seminar was attended by approximately 130 students from various programs at FEB UGM. One of the participants, Parahita Janu Arundati, an Economics student from the Class of 2022, expressed her excitement about attending the event. She hopes that more similar seminars will be held to provide additional knowledge outside of the classroom. "This event added valuable insights and was very useful. What made it especially interesting was the presence of a speaker from the World Bank Group, which is not something we get to experience every day," she explained.

Reportage: Shofi Hawa Anjani
Editor: Kurnia Ekaptiningrum 
Watch the full video at https://www.youtube.com/live/tdrAN6fJmcY

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