COORDINATING MINISTRY FOR ECONOMIC AFFAIRS
REPUBLIC OF INDONESIA

PRESS RELEASE
HM.4.6/70/SET.M.EKON.3/02/2023

Menko Airlangga: As the Bright Spot in the Dark, We Can Encourage Various Uncertainties to be Optimism

Jakarta, February 28th, 2023
 

Amid the various global challenges, the government has successfully ensured economic recovery runs effectively. PC-PEN constructive policy is the key to Indonesia’s economic recovery success. PPKM, which has now been officially revoked, will be a step to continue to improve the performance of national economic growth.

Regarding the performance of various leading indicators, both from the real and external sector, Indonesia's economic prospects in the future are certainly at a good level. This condition is reflected in the Consumer Confidence Index, which is still optimistic, PMI manufacturing that is consistently expansive, a trade balance that still shows a surplus trend for 33 consecutive months, and the ratio of foreign debt to GDP that is still at a safe level.

"We know that we can guard our economic growth last year by 5.3% (yoy), and of course, this is one of the highest economic growth during the last 10 years," said Coordinating Minister for Economic Affairs Airlangga Hartarto when delivering a keynote speech at the CNBC Indonesia Economic Outlook 2023 themed "Maintaining the Momentum of Indonesia's Economy In the midst of uncertainty".

The government's actions to face this year are filled with a sense of optimism, but still alert. In mitigating these risks, the government has prepared several main policies. With an appropriate mix of fiscal and monetary policies, the Law on the Development and Strengthening of the Financial Sector, the Job Creation Regulation in Liew of Law (Perpu), and the Foreign Exchange from Export Proceed regulation will expectedly provide legal certainty during an uncertain situation. This policy will be a pillar to produce economic growth, adequate job creation, stability of finance and exchange rates.

Mitigating the transmission of the increase in global commodity prices, the government carries out various extra efforts of inflation control in the TPIP/TPID forum through the 4K policy strategy, namely price affordability, supply availability, smooth distribution, and effective communication. The results of these various policies encourage Indonesia's inflation to be at a controlled level. In 2022, inflation reached 5.5% (yoy) under Outlook, and in January 2023 was recorded at 5.28% (yoy).

The government also pays attention to various medium and long term policies to ensure economic growth’s sustainability. Some of the policies that have been encouraged include down-streaming Natural Resource commodities, promoting industrialization, improving human resources quality, and accelerating Nusantara Capital City’s development.

An inclusive and sustainable recovery policy is also reflected in the results of the 2022 G20 Summit as stated in the Leader's Declaration. Apart from that, Indonesia also holds the ASEAN Chairmanship this year, in which Indonesia pushes for an economy-based theme. Under the three strategic drives, namely Recovery-Rebuilding, Digital Economy, and Sustainability, ASEAN will expectedly achieve 16 Priority Economic Deliverables (PED).

On this occasion, Coordinating Minister Airlangga did not forget to convey the importance of political stability in policy implementation to respond to various crisis challenges. "Indonesia has guarded ASEAN in the last 20 years, becoming a truly politically stable region. And that's because of Indonesia's leadership. Indonesia and ASEAN are the bright spots in the dark. So, that's what encourages confidence. We encourage this uncertainty to turn into optimism," concluded the Coordinating Minister Airlangga. (map/rtn)

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Head of Communications, Information Services, and Meetings Bureau
Coordinating Ministry for Economic Affairs of the Republic of Indonesia
Haryo Limanseto

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