Government Focuses on Implementing Medium-Term Strategy to Dispel Economic Weakening Narrative
By: Naura Astika
Amid increasingly complex global dynamics and domestic challenges, the Indonesian government has demonstrated a strong commitment to maintaining national economic stability and growth. The narrative of economic weakness that often circulates in the public sphere, both through social media and other information channels, cannot be avoided, especially when there are exchange rate fluctuations, inflationary pressures, or slowdowns in global investment.
Currently, the government is not sitting idle. Instead, various medium-term strategies have been designed and continue to be implemented with the main goal of strengthening the economic foundation, increasing investor confidence, and maintaining the welfare of society as a whole.
In recent months, the government has been actively intensifying fiscal strategies and policies that are disciplined and responsive to structural challenges. This can be seen from efforts to maintain the budget deficit at a controlled level, while still allocating the state budget productively, such as for infrastructure development, education, health, and social protection.
This step proves that the government is not merely pursuing numerical growth, but also ensuring that development can be felt by all levels of society in the medium to long term.
Minister of Finance, Sri Mulyani said that in order to strengthen economic and social independence to realize a just, prosperous and prosperous Indonesia, the medium-term strategy is focused on eight strategies that support the development agenda.
The government’s medium-term strategy not only focuses on post-pandemic recovery efforts, but is also directed at strengthening economic resilience to external shocks. One of the main approaches is through national economic transformation that emphasizes industrial downstreaming, MSME digitalization, and accelerating the energy transition.
The downstream program, for example, is a concrete form of a medium-term strategy aimed at increasing the added value of domestic commodities and reducing dependence on raw material exports. In this way, Indonesia will not only become a provider of natural resources, but also an important player in the global industrial supply chain.
Member of the Indonesian House of Representatives, Bambang Soesatyo, said that his party invited alumni associations from various educational institutions in Indonesia to take a strategic role in facing the challenges of the weakening global economy and declining purchasing power of the community.
Digitalization is also an important focus in the government’s strategy. The government realizes that national competitiveness will depend heavily on the ability of the community and business actors to adapt to technology. Therefore, various digital ecosystem strengthening programs continue to be intensified, such as digital literacy training, development of information technology infrastructure to remote areas, and incentives for local technology startups.
The government is also focused on improving the investment climate. Structural reforms that have been and are being carried out, such as simplifying licensing through the Online Single Submission (OSS), fiscal incentives for strategic industries, and revising regulations that hinder investment, are part of the medium-term strategy to attract foreign and domestic capital. All of this shows that the government is not only reacting to the current economic situation, but is also building a stronger foundation for future growth.
The narrative of economic weakness that is developing often does not reflect the whole reality. Data shows that Indonesia’s economic growth is still in a healthy range compared to other countries in the region. Although global pressures such as geopolitical conflicts, high interest rate trends, and uncertainty in the Chinese economy have impacted the national economy, Indonesia still recorded positive economic growth above 5% annually. Inflation is also relatively controlled, while the unemployment rate is slowly decreasing. This is an important indicator that the national economy still has quite good resilience.
On the other hand, the government’s medium-term strategy also involves strengthening the agricultural and food sectors. Food security is a strategic issue, especially amidst the threat of climate crisis and disruption of the global supply chain. Investment in agricultural technology, development of irrigation infrastructure, and incentives for farmers are real steps to ensure national food availability and price stability. These steps are not only short-term, but are part of efforts to build comprehensive and sustainable national economic resilience.
Consistency in implementing this medium-term strategy is the main key in dismissing the narrative of economic weakness. The government understands that public perception of economic conditions is greatly influenced by communication and openness of information. Therefore, transparency in budget implementation, program realization reports, and active dialogue with business actors and the community are integral parts of the government’s communication strategy.
Clarity in policy direction, courage to carry out reforms, and consistency in implementation are important factors that prove that the government is serious about maintaining the momentum of growth and sustainability of the national economy.
With a strong policy foundation, an adaptive medium-term strategic approach, and the courage to undertake structural reforms, Indonesia is on the right track to face global economic challenges. The narrative of economic weakness that is circulating needs to be addressed proportionally, by referring to data and facts. The government, in this case, is not covering up the existing challenges, but rather facing them with planned, measured, and future-oriented steps.
)* Strategic Policy Observer
