Yogyakarta, April 21th, 2021.
The Master of Science and Doctoral Program (MD) FEB UGM has held an open examination for doctoral promotion in Economics for Ph.D. candidate Chandra Utama. Eko Suwardi, M.Sc., Ph.D., as Dean of the Faculty of Economics and Business UGM, acting as Chair of the Session. Also attending were Prof. Insukindro, M.A., Ph.D. as the promoter, Ardyanto Fitrady, M.A., Ph.D., and Prof. Catur Sugiyanto, M.A., Ph.D. as co-promoter. There was also an assessment team that included Prof. Sri Adiningsih, M.Sc., Ph.D., Dr. Akhmad Makhfatih, M.A., and Dr. R. Maryatmo, M.A. The examiners in this trial were Prof. Wihana Kirana Jaya, M.Soc., Sc., Ph.D., and Prof. Dr. Samsubar Saleh, M.Soc., Sc. Also attending were families of doctoral candidates, work relatives from Parahyangan Catholic University, and guests.
The open doctoral promotion exam was opened by the chairman of the session and then given a chance to the promoter, co-promoter, assessment team, and examination team to provide questions related to the dissertation that has been carried out. The Ph.D. candidate was able to answer questions well and fluently and was able to defend the arguments for his dissertation entitled “Interaction of Fiscal and Monetary Policy in Indonesia,” so that he successfully graduated with the predicate “satisfying.”
For information, Dr. Chandra Utama taking a very relevant topic, which is interaction of fiscal and monetary policy. This study aimed to verify the NNS (New Neoclassical Synthesis) model in the Indonesian economy, assess the accuracy of fiscal policy in achieving its goals, examine the accuracy of monetary policy in achieving its goals, analyze forms of policy interaction in Indonesia, substitution or complementary, and analyze patterns of policy interaction in Indonesia.
Dr. Chandra also revealed the differences between his research and previous studies. He explained that in previous researches, there had not yet emerged the rationale that in the economy, there must be a led, which revealed that coordination between policies could occur if both had the same direction and strength. That is different from the results of recent studies, which revealed if two policies are not led, namely equally dominant or equally non-dominant, then policy implementation can fail. Therefore, his dissertation reveals the rationale that in the economy there must be led policies.
After going through the testing phase, there were several results from Dr. Chandra’s dissertation. First, the research verifies that the NNS model can be applied in Indonesia. Second, fiscal policy has been implemented appropriately and is a countercyclical policy. Third, monetary policy is implemented appropriately, in which BI (Bank Indonesia) tries to control the exchange rate and inflation. Fourth, the interaction of fiscal and monetary policies is complementary, which is the two policies coordinate with each other. Fifth, the form of coordination of the two policies, namely fiscal and monetary policies, is the fiscal-led policy mix.
Thus, the contribution of his research is to recommend an effective fiscal and monetary policy coordination system. Fiscal policy must support monetary policy in controlling the IDR / USD exchange rate because this exchange rate will also affect fiscal financing. Fiscal policy must also pay attention to the inflation rate because inflation directly affects the economic output. Conversely, monetary policy must pay attention to output and the level of unemployment. A low unemployment rate which results in a high supply of goods can meet high aggregate demand so that the inflation rate remains low. This effective coordination will be guaranteed by strengthening the institutional system. If the economy is in a low output condition and a situation of crisis prospects, the policy must be directed in the form of a lead-fiscal-policy mix.
The lecturer at the Faculty of Economy, Parahyangan Catholic University, officially holds the 5085th doctoral degree who passed the exam at Gadjah Mada University, and the 305th who passed the exam at FEB UGM. Prof. Insukindro, M.A., Ph.D. as the promoter congratulated Dr. Chandra and advised him to always be productive in contributing to the scientific world, both in terms of teaching as a lecturer, and in writing scientific papers. The virtual Open Exam Session closes with congratulations from all participants to the Ph.D. candidate.
