By : Bimo Ariyan Beeran )*
Indonesia’s economic growth continues to grow steadily. This shows that the strategy and approach of the Government is truly correct in its efforts to maintain and maintain the stability of the nation’s economic growth amidst global uncertainty.
In fact, efforts to continue to maintain stable economic growth amidst the shock of global uncertainty are certainly not an easy matter. In fact, quite a few other developed countries in the world also experienced shocks.
However, we should be grateful that the shock of global economic uncertainty did not occur at all and did not have a significant impact on Indonesia. This is thanks to the very precise efforts, strategies and approaches of the Indonesian Government.
Brawijaya University Economic Observer (UNBRAW), Rivaldi Naulia, stated that Bank Indonesia (BI) stated that currently the rate of economic growth in the country has reached 4.7 percent to 5.1 percent.
It is not without reason why the increase in economic speed in Indonesia continues to occur, because according to Rivaldi, the increase in exports and domestic demand continues to occur in line with the growth in household consumption and investment.
Not only that, but the good economic figures in Indonesia are also because the inflation rate is still relatively moderate. These various situations certainly do not just appear without reason.
In fact, overall financial system stability in Indonesia continues to occur. This is because there is very strong support and encouragement from the fundamental foundations of the nation’s economy, namely a strong fiscal condition.
Apart from that, various parties continue to project that this nation’s monetary situation will continue to be in a very promising position. Therefore, with all of these things, it is not surprising why the economy in Indonesia will continue to experience growth and even get stronger in the future.
Even the current national economic resilience is facing difficult conditions, including global uncertainty, but it seems as if no significant shocks have occurred in Indonesia.
All of these things reflect the capabilities and skills of the Government of the Republic of Indonesia (RI) in facing various kinds of economic challenges that occur even at the world level.
Even though the government has proven successful in continuing to strive for national economic defense so that it can withstand all the shocks of global uncertainty, this does not mean that people can simply become complacent.
In fact, the role of all elements of the nation should be able to jointly fully support the government’s efforts in realizing strong economic stability and resilience to all global uncertainties. If all parties take part, Indonesia’s economic growth will clearly remain stable.
Meanwhile, the Coordinating Minister (Menko) for the Economy, Airlangga Hartarto, explained that instead of there being a decline in Indonesia’s economic growth due to global uncertainty, this nation is actually becoming stronger.
Indonesia’s competitiveness based on data from the Institute for Management Development (IMD) shows that from previously being ranked 67th, this nation has now risen significantly to 27th.
One of the things that caused this increase is related to the domestic economy in terms of government institutions, which is of course a result of the ratification of the Job Creation Law (UU Ciptaker).
So, despite global economic uncertainty, economic growth in Indonesia remains stable and even tends to increase, one of which is due to the existence of the Job Creation Law which has resulted in improvements in various fields such as the investment climate, ease of the recruitment process and the resolution of labor disputes.
Then in terms of economic fundamentals, in fact Indonesia is still much better compared to other countries in the world. This is reflected in the central bank’s policy interest rate at 6.25 percent, inflation at 2.84 percent, then the current account balance at 0.64 percent.
Overall, this turns out to be better if you look at the conditions in other countries such as Malaysia and Brazil. Likewise, in terms of fiscal balance and foreign exchange reverse, Indonesia is also better.
Likewise, the Minister of Finance of the Republic of Indonesia (Menkeu RI), Sri Mulyani Indrawati, said that the stability of the country’s financial system will continue to be maintained in the first quarter of 2024, even amidst increasing global economic uncertainty.
The stability of the financial system is maintained because it receives full support from fiscal policy, monetary policy and how stable the financial sector in Indonesia is.
The government continues to ensure that all members of the Financial System Stability Committee (KSSK) are increasingly aware of the conditions and dynamics of the domestic economy, as well as what spillovers might occur on the global side of the national economy and financial system.
Various efforts, strategies and approaches from the Indonesian Government have been very appropriate and have even proven successful in continuing to maintain national economic growth in a maintained and stable condition even in the midst of global economic uncertainty. This certainly needs to be appreciated as a reflection of national economic policy which is on the right track.
)* The author is a contributor to Ruang Baca Nusantara
