Great! The Indonesian Economy Is Called Strong In Combating The Recession Storm, This Is Proof

Illustration (Photo: Doc. Antara)

Coordinating Minister for the Economy Airlangga Hartarto said Indonesia is believed to be able to go through a recession storm which is expected to occur in 2023 triggered by the economic slowdown in developed countries.

According to him, the projection is based on several assumptions. First, the large population allows domestic production to be consumed directly by the community without relying on foreign trade.

"We see the formation of Indonesia's 50.3 percent gross domestic product (GDP) supported by domestic consumption," he said when meeting reporters via virtual channels on Monday, November 7.

Second, the trade side between countries is not very significant in Indonesia's economic structure.

"Our dependence on exports is only 26 percent. Of course, if there is turmoil in the global market, consumption can be relatively absorbed," he added.

Three, the macroeconomic achievement at the close of the third quarter of 2022 made encouraging results so that they could become valuable capital in the face of continued uncertainty.

"From the inflation factor, we can maintain it well. In fact, the latest data (October) was deflation. So, the conditions achieved today can be of higher quality because the growth rate is above the inflation rate," he said.

For information, the Central Statistics Agency (BPS) today reported that Indonesia's economic growth rate until the third quarter of 2022 was 5.72 percent on an annual basis or year on year/yoy.

The score was better than the inflation rate which began to slope to 5.71 percent yoy in October 2022. VOI noted that the inflation level had been cancellated' and reached its peak this year of 5.95 percent in September 2022 triggered by an increase in fuel oil prices (BBM).

Fourth, the book is still increasing investment realization. This is useful to support Indonesia's macro conditions in the midst of the capital outflow trend recently.

"Then we see that structural reforms from the implementation of the Job Creation Law can continue to maintain hope and be our step to avoid the global recession in 2023," concluded Coordinating Minister Airlangga.