Zakiya Rakha Fadhillah
2311021117

1. The PPT mentioned that the increase in imports in Q1 2026 was driven in part by the increasing demand for industrial raw materials. If this trend continues unchecked, the risk is a widening current account deficit and pressure on the rupiah exchange rate.
The most relevant policy is deepening downstream processing, a key strategy for Indonesia, particularly for nickel, bauxite, and palm oil. By processing raw materials domestically, Indonesia reduces dependence on imports while increasing export value. Furthermore, the government needs to encourage import substitution through incentives for the domestic raw materials industry and diversify trading partners to reduce over-reliance on a single supply source that is vulnerable to geopolitical disruptions.

2. Both have a role, but in the long term, infrastructure is superior. The PPT material explains that investment (GFCF) grew by 5.96%, representing 28.29% of GDP, creating jobs, increasing production capacity, and sustainably boosting productivity.
Social assistance such as MBG and THR are indeed effective in boosting short-term consumption, as evidenced by the 21.81% surge in government spending in Q1 2026. However, their absolute contribution to GDP remains limited, as they only account for 6.71%. They serve more as a countercyclical buffer than a foundation for growth.
Ideally, the two should complement each other: social assistance maintains people's purchasing power in the short term, while infrastructure builds productive capacity for sustainable growth.

As a regent, my approach to dealing with budget constraints is clear: agricultural irrigation and village roads. I’ve made this choice because these are the things the community has asked for, and they can feel the impact directly.

For example, consider a farmer who relies on rain every planting season because the irrigation channels have never been repaired. Or a mother who must travel along potholed and muddy roads just to take her child to the health center for treatment. They don’t need a town square that goes viral on social media. They need flowing water and passable roads.

The political pressure to build city landmarks is indeed real. But a good leader is not measured by how much their content is shared, but by how tangible the changes felt by their people are. A town square might trend for a week, then be forgotten. But good irrigation will sustain a farmer’s family for years to come.