A senior economist expresses his belief that economic principles of "Sumitronomics" could play a vital role in accelerating Indonesia's economic growth, citing that many ideas from Indonesia’s renowned economic thinker, Sumitro Djojohadikusumo, remain highly applicable in today's context.

“If implemented, achieving 7 percent economic growth shouldn’t be too difficult,” Purbaya Yudhi Sadewa, Chairman of the Indonesia Deposit Insurance Corporation (LPS), said upon attending the National Symposium on Sumitronomics and the Future of Indonesia's Economy, hosted by Katadata in Jakarta on Tuesday, June 3, 2025.

His optimism is rooted in Sumitro’s work Kredit Rakyat di Masa Depresi (People’s credit during the Depression Era), which he described as containing core principles still relevant today, including economic growth, social and political stability, and equitable development.

“Equity ensures social and political stability, and a balance between fiscal tools and private sector power. I recommend economists read that book,” he said.

During his speech at the symposium, Purbaya stressed the timeliness of Sumitronomics as a strategy to foster high and sustainable economic growth. One key aspect of this approach is direct engagement with the public through targeted programs.

“This builds trust, which in turn supports economic, social, and political stability,” he noted.

He further observed that over the past two decades, Indonesia has gradually adopted policies aligned with Sumitronomics. However, growth engines − especially between public and private sectors − remain uneven.

“What’s needed is a balanced development strategy, with strategic contributions from both the private sector and the government,” Purbaya said.

On the banking front, Purbaya reaffirmed LPS’s commitment to maintaining financial system stability and supporting fair competition in the banking sector. This includes promoting wider access to credit, particularly for micro, small, and medium enterprises (MSMEs), through public credit schemes.

Since its establishment in 2005 through May 23, 2025, LPS has liquidated a total of 143 banks − 128 Rural Banks (BPR) and 15 Islamic Rural Banks (BPRS). Of these, 122 banks (111 BPR and 11 BPRS) have completed liquidation processes, while 20 banks remain in the process.

As Indonesia seeks inclusive and sustainable economic advancement, Purbaya’s endorsement of Sumitronomics serves as a reminder of the enduring value of policies that prioritize people-centered growth, financial stability, and strategic public-private collaboration.