TheJakartaPost
Please Update your browser
Your browser is out of date, and may not be compatible with our website. A list of the most popular web browsers can be found below.
Just click on the icons to get to the download page.
Looking back, Airlangga sees improved economy but unfinished business
President Joko “Jokowi” Widodo’s administration is set to come to a close on Oct. 20 having left its mark on the country. Over the past 10 years, Indonesia has progressed well in some areas but has also missed several targets along the way.
Change text size
Gift Premium Articles
to Anyone
Share the best of The Jakarta Post with friends, family, or colleagues. As a subscriber, you can gift 3 to 5 articles each month that anyone can read—no subscription needed!
Coordinating Economic Minister Airlangga Hartarto speaks to The Jakarta Post about the Indonesian economy in his Jakarta office on Sept. 30, 2024. (Office of Coordinating Economic Minister/-)
P
resident Joko “Jokowi” Widodo’s administration is set to come to a close on Oct. 20 having left its mark on the country’s approach to its goal of becoming a developed nation by 2045. Over the past 10 years, Indonesia has progressed well in some areas but has also missed several targets along the way.
The Jakarta Post’s Deni Ghifari and Vincent Fabian Thomas sat down with Coordinating Economic Minister Airlangga Hartarto in his Jakarta office on Sept. 30 to talk about how the country’s economy has changed over the past 10 years and what needs to be done to ensure progress in the future.
Question: How has the Indonesian economy fared in the past 10 years?
Answer: We managed to maintain economic growth of around 5 percent annually in the past 10 years, which was followed by a relatively low inflation rate of 2.1 percent. A decade ago, our inflation was above 8.38 percent, so inflation has declined a lot. Therefore, the economic growth is a lot better than 10 years ago because GDP grew at rate far higher than inflation.
Our overall size of the economy was around Rp 10 quadrillion (US$659.8 billion) a decade ago. Now it’s around Rp 20 quadrillion. The GDP has doubled.
Also, our gross national income (GNI) is above $4,000 per capita, which puts us in the upper-middle class, according to the World Bank classification. We expect it to reach $5,000 by the end of this year. This shows our economic development is on track despite heightened geopolitical tensions and climate change.
