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Coordinating Economic Minister Airlangga reveals three engines of national economic growth
Responding to various challenges faced by the Indonesian economy, Coordinating Minister for Economic Affairs Airlangga Hartarto continues to echo optimism in regard to the strength of the national economy.
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esponding to various challenges faced by the Indonesian economy, Coordinating Minister for Economic Affairs Airlangga Hartarto continues to echo optimism in regard to the strength of the national economy. With that optimism, stakeholders are expected to continue to maximize contributions to increase growth and maintain national economic resilience.
Through the strong support of the people, Indonesia maintained the resilience of the national economy amid the global dynamics. The fundamentals of the Indonesian economy remain strong and it was able to increase by 5 percent through eight consecutive quarters and recorded better growth than those of various other countries. The rate of inflation was also relatively stable and the government debt ratio is still at a safe level. In the short term, the government is optimistic that the economy will be able to grow by 5.1 percent in 2023 and grow by 5.2 percent in 2024 despite the various downside risks it faces.
In the National Seminar on the Indonesian Economic Outlook organized by the Coordinating Ministry for Economic Affairs on Friday, President Joko “Jokowi” Widodo said that Indonesia will have no reason not to be optimistic in 2024. However, the President also reminded his listeners that all efforts made to maintain national economic resilience must prioritize caution.
Carrying the theme of “Optimism for Strengthening the National Economy in the Midst of Global Dynamics,” the National Seminar on Indonesian Economic Outlook this year was aimed at discussing current trends, obstacles and opportunities that Indonesia is facing in mitigating future global economic turmoil.
It is hoped that a deep understanding of the economic outlook will be able to help the government and the private sector in making various strategic decisions. Apart from that, the activity was also expected to increase understanding of the role of society in supporting sustainable economic growth.
On the same occasion, Coordinating Minister Airlangga also explained the vitality to move and maximise the three economic engines to ensure that they are able to function sustainably in the future in regard to achieving growth targets.
"We must not be complacent, we need to mobilize and maximize the three economic engines to continue functioning in the future," said Airlangga.
The conventional economic engine needs to be revitalized and increase its capacity in order to be able to encourage higher productivity, new investment and exports. Moreover, the new economic engine will function as a growth accelerator in the future, such as the application of digital applications and artificial intelligence in various economic sectors, the development of the semiconductor industry, as well as the development of the green economy and renewable energy. Finally, perfecting the Pancasila economic engine will achieve fair economic growth.
“So, these three things are important to continue to push forward. Indonesia is one of the countries that has succeeded in reducing fluctuations from various geopolitical crises, such as climate change, and using the State Budget as a shock absorber," concluded Airlangga.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
