Jakarta – The national economy is still able to survive steadily in the midst of continuing geopolitical turmoil.
The head of the Population Research Centre (PRK) of the National Research and Innovation Agency (BRIN), Nawawi explained how the current national economic conditions and whatever factors that led to Indonesian economic growth remained stable.
He said that since 2023, there has been an increase in economic growth in Indonesia.
“Economic growth in 2024 is targeted at 5.24 percent, which means there was an increase in the previous year from 5.05 percent,” Nawawi said.
Therefore, the head of the BRIN PRK expressed that all parties should be grateful for the fact that the national economic growth is actually stable.
Moreover, the stable economic growth in Indonesia remains even though the world is currently experiencing uncertainty due to warming geopolitical conditions.
“We should be grateful that economic growth can beined stable at around 5 percent and hope to continue to rise with the adjustment of the development process,” he said.
“Especially if we talk about the impact of the global economic slowdown that is actually currently tending to slow down due to many factors,” Nawawi explains.
In spite of the warming geopolitics of the world, the conflict between Ukraine-Russia and Israel-Palestine must continue to lead to global economic instability.
“The first factor is due to the role of Ukraine and Russia which has greatly influenced the global economic constellation, and another Gulf war between Israel and Palestine that has affected several surrounding countries and the instability of the world economy,” said the BRIN PRK chief.
Nawawi explained that despite this, it turns out in the midst of a slowdown in the world economy, the fact that Indonesia continues to survive positively.
“In the midst of the slowdown of the world economy, Indonesia continues to survive positively, even some sectors are quite uninfluential and the purchasing power of the people can continue because it is APBN is sought to support household consumption,” he said.
Economic growth remains sustainable even in the midst of challenges because one of them is good government policies.
“It is also related to how the government’s efforts to optimize some of the strategic economic aspects such as the implementation of the PSN that is seized will definitely have an impact on the circular economy around it,” Nawawi said.
“The government spending and various development sectors especially ICT development and also capital spending, whether it is the central government or the region which also supports the current national economic stability to the future,” he continued.
Not only that, Nawawi continued that there are several other sectors that are influential, mainly the hilirisation.
“The most influential sectors, such as trade, manufacturing and also very important sectors are industries. As in Sulawesi, Maluku and Papua the economic growth is quite high even above the national of about 6.37 percent,” Nawawi said.
“Because the mining sector has been devastated, the devastation of natural resources there has had an impact on the national economic growth that can be preserved to this day,” he added.
So, furthermore, even though the global economic constellation is slowing quite slowly, for the case of Indonesia, it can still survive well with economic growth conditions that tend to rise. (*)
