By: Mega Chess Noviana *
Indonesia is one of eight countries that are considered the safest in facing the economic crisis. The world economic turmoil that has hit Turkey and Venezuela, has not paralyzed the Indonesian economy. According to the famous Japanese financial institution, Nomura Holdings Inc., there are seven other countries which are also considered the safest in facing the monetary crisis, including Brazil, Bulgaria, Kazakhstan, Peru, the Philippines, Russia, Thailand and Indonesia. The country has a zero score related to the risk of the monetary crisis, which means that the eighth is considered the safest in the face of the economic crisis.
As for the indications by looking at a number of factors, including foreign exchange reserves, the level of foreign debt, interest rates, and imports. In this paper, Indonesia’s economic stability is based on these indications.
Foreign Exchange Reserves, Indonesia’s foreign exchange reserves as of August 2018 are considered to be quite high at USD 117.9 billion, slightly shifting lower than July 2018 of USD 118.3 billion. due to payment of foreign debt and external factors, namely changes in exchange rates due to uncertainty in global financial markets. Indonesia’s financial condition is in line with infrastructure development and other government productive activities.
Interest rates, like other countries, the Fed’s policy or the Federal Reserve raises the interest rate, of course, for other countries. Given that the American dollar is a mecca for other countries’ currencies. But it is not for Indonesia, as the completion of various domestic infrastructure projects so as to help the recovery and acceleration of economic turnover that increases state revenues. This means that Indonesia is able to return despite an increase in interest rates due to the policies of the American Fed.
While the import value in mid-2018 has reached USD 5 billion. The magnitude of this import also affected the current account deficit reaching USD 13.5 billion in the first semester of 2018. Therefore the government has officially issued the latest regulation regarding the imposition of an increase in Income Tax (PPh) 22 for imported goods. Officially 1,147 imported goods were revised in tariffs, this rule aimed at stabilizing the rupiah exchange rate by saving foreign exchange and encouraging domestic industries. Emphasis on imports will also encourage domestic (industries) to grow.
There are many reasons that believe Indonesia is safe driving in the midst of the global economic storm. Even the stability of this country is seen and recognized in the eyes of the world. Now Indonesia has been included in the group of large countries by becoming a member of the G20 (Group of Twenty). Indonesia was given the honor of joining this G-20 in 2008 and as the only ASEAN country to become a member of the G-20. As the name suggests, G20 members consist of 19 countries with large economies and are added to the European Union. The main objective of the G20 is to bring together the leaders of the world’s major developed and developing economies to overcome the challenges of the global economy.
President Joko Widodo said, “What I need to remind you is that we have entered the country at the G20. This means that we are already in a large country, no longer anyone who feels inferior, feels we are inferior. We should no longer seek help “We should have helped, helped, helped. Behind. We are a big country. Our economy is also good growth. Maybe in the G20 number three or number four. GDP, our GDP is also great. If we still feel inferior how we want to be brave. “
Exceptional amidst the world economic turmoil Indonesia is optimistic that it is far from the economic crisis, but on the contrary Indonesia will make a big leap forward as a developed country. Indonesia continues to accelerate in pursuit of the target of becoming a developed country by 2039. Under Jokowi’s administration various monetary policies have been carried out with creative solutions. Various infrastructure projects have been well realized. Infrastructure development that was encouraged by the government over the past 4 years did take time to be enjoyed, not immediately felt, but in the long term. But certainly this development has a positive effect on the economy and the level of world confidence.
A new maneuver was also taken by the Jokowi government by actively strengthening sea highway connectivity with the development and development of ports, which in 2015-2017 had reached 477 locations. The construction of the Sea Toll Road is expected to be able to connect regions in Indonesia so that it has a positive impact on the prices of goods that do not need to be different in each region, and this has shown positive results. The presence of Sea Toll which is the concept of transporting logistics by ships has succeeded in lowering the price of basic charts in several eastern regions of Indonesia. With the relationship between these sea ports, the smooth distribution of goods to remote areas is created.
Then between 2015 and 2017, an accumulative long railway line was built around 369 km of railroad tracks; 11 new airports, and 397 km of toll roads that are already operating. The government also continues to build and integrate the Trans Sumatra road, Trans Java, Trans Papua, which will open up new opportunities for the community.
Ports, airports, railroads, roads and toll roads are built integrated with regional economic growth centers so that they can provide added value for regional development and also have an impact on MSMEs (Micro, Small and Medium Enterprises). Not to forget also the construction of reservoirs, dams, and irrigation so that farmers throughout Indonesia can harvest more than once, which will help the Indonesian people achieve food security, and even become export commodities.
While for urban governments the government continues to build mass modern transportation such as LRT and MRT, which later will become a new culture, a new civilization in the field of mass transportation. At the same time changing the character of the Indonesian people, because there is a culture of discipline that is instilled. There is a lot of homework to bring Indonesia into a great Indonesia. Slowly Indonesia is able to dominate the world market share through superior export commodities, such as rubber (the second largest in the world), textiles, palm oil (most of Indonesia’s palm oil production to be exported), cocoa (the third largest in the world), coffee (including the number one world coffee supplier), electronic equipment, forest products and processed products, shrimp, automotive, coal, fish and spices.
The rapid development in the era of Jokowi’s administration is not fiction, but the world can see it in real terms. In the midst of the global economic turmoil, Indonesia is advancing rapidly, Indonesia is able to make the world put its trust. Evident from the results of President Jokowi’s visit to South Korea on September 9, 2018. The result of the visit was the establishment of business cooperation between the Investment Coordinating Board (BKPM) and South Korea worth 6.2 billion US dollars (US), equivalent to Rp. 91 , 76 trillion (exchange rate of Rp. 14,800), and this consists of business agreements and investment commitments.
The Indonesian economy is safe going forward for sure. There is no reason to be pessimistic. The Indonesian people are endowed with so much potential. Focus on cultivating and building this country. It’s time we become an independent nation, stop relying on other nations. Optimistic that the Indonesian economy is very safe. Natural resources, the potential of the population, the trust of the people of Indonesia and the international world which is accompanied by prayer and hard work are the capital that we have. We must be proud of Indonesia, together with Indonesia, we will definitely move towards advanced Indonesia 2039!
*) Student at Hassanuddin University