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National seminar outlines optimistic economic outlook, resilience amid global situation
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esponding to the various challenges faced by the Indonesian economy, Coordinating Economic Minister Airlangga Hartarto remains optimistic about the resilience of the national economy, hoping that all stakeholders can continue to maximize their contributions to increase growth.
Through strong support from all levels of society, Indonesia has maintained the resilience of the national economy amid a challenging global dynamic.
The fundamentals of the Indonesian economy continue to show strong performance, growing in the range of 5 percent for eight consecutive quarters while recording better growth compared with other countries. Meanwhile, the inflation rate is also relatively stable, and the government debt ratio is still at a safe level.
"In the short term, we are optimistic that the Indonesian economy in 2023 will be able to grow by 5.1 percent, and in 2024 it will grow by 5.2 percent amid the various downside risks it faces," Airlangga said.
During the National Seminar on the Indonesian Economic Outlook organized by the Office of the Coordinating Economic Minister on Dec. 22, President Joko “Jokowi” Widodo said that in 2024, Indonesia will have no reason not to be optimistic, but he also underlined the importance of prioritizing caution in all efforts made to maintain national economic resilience.
With the theme Optimisme Penguatan Ekonomi Nasional di Tengah Dinamika Global ("Optimism for Strengthening the National Economy Amid Global Dynamics”), this year's National Seminar on Indonesia's Economic Outlook was aimed at discussing the latest trends, challenges and opportunities faced by Indonesia in mitigating future global economic turmoil.
The seminar was held to deepen the understanding of the economic outlook to help the government and the private sector make various strategic decisions. In addition, it was also expected to increase the understanding of the role of the general public in supporting sustainable economic growth.
Among the topics that were discussed were issues and policies implemented to mitigate the risk of global economic turmoil, as well as to strengthen resilience in the domestic economy. The series of national seminar events also consisted of two high-level panel sessions, with each session presenting four panelists.
Looking ahead with optimism
The President said Indonesia had been successful in handling and emerging from various crises, reiterating that the country had received acknowledgment of this from other countries.
The President added that he was optimistic that Indonesia would be able to continue turning challenges into opportunities to continue national economic growth and strengthen resilience.
In the short-term, economic growth needs to be encouraged by mitigating the negative transmission of conditions of global economic weakness and slowdown, by ensuring that purchasing power, investment inflows and macroeconomic stability are all maintained.
The growth must also be balanced with inclusivity and sustainability. This is to ensure that the short-term goals can translate into economic resilience in the long run, through accelerating the energy transition, sustainable financing, digital innovation and preparing human resources based on a sustainable economy.
“So, my conclusion is that Indonesia's 2024 economic outlook is very optimistic. Optimistic because we see our economic performance, and optimistic because of the cool political situation ahead of the 2024 election. What is important is consistent hard work, synergy between the government and the private sector and sustainable work," Jokowi said.
However, Airlangga also stressed that Indonesia must remain vigilant because of emerging risks, such as volatility in commodity prices, tightening monetary policies in developed countries, the disruption of global supply chains and vulnerabilities in food and energy security caused by climate change.
Oiling the three economic engines
During the seminar, Airlangga underlined the importance of mobilizing and maximizing the three economic engines so that they can continue to function sustainably in achieving growth targets.
"We must not be complacent, we need to mobilize and maximize the three economic engines to continue functioning in the future," he said.
Airlangga explained that the conventional economic engine needed to be revitalized and its capacity expanded to encourage high increases in productivity, new investment and exports.
Furthermore, the new economic engine will function as a growth accelerator in the future, such as through the application of digital applications and artificial intelligence (AI) in various economic sectors, the development of the semiconductor industry and the development of the green economy and renewable energy.
Finally, the Pancasila economic engine will need to be perfected, thus fulfilling its function as a just economic engine.
“These three things are important to be pushed forward, and Indonesia is one of the countries that has succeeded in reducing fluctuations from various geopolitical crises and climate change by using the APBN [state budget] as a shock absorber," Airlangga concluded.
This article was published in collaboration with Coordinating Ministry for Economic Affairs Republic of Indonesia
