Jokowi Reveals The Key To Economic Growth Ahead Of Political Year

President Jokowi (Photo: dock. Antara)

JAKARTA - President Joko Widodo (Jokowi) said that in maintaining economic growth in the political year, one of the keys is increasing exports and investments.

"Maintaining economic growth during the transitional period of the political year, yes, the key is that exports are maintained so that they continue to increase," Jokowi said at the BNI Investor Daily Summit 2023, Tuesday, October 24.

In addition, Jokowi said that investment needs to be maintained so that it continues to increase because Indonesia's economic growth base is still in the consumption sector.

"Investment needs to be maintained, so that it increases because our basis is still the basis for economic growth in the consumption sector, both the government and the private sector. But we hope that if it can increase exports, investments, that will be the basis for economic growth," he explained.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto said the world economy was still overshadowed by various risks and uncertainties. Starting from the risk of China's weakening economic growth.

Then, volatile commodity prices, the Ukrainian-Russian war geopolitical conflict and the Palestinian-Israeli conflict, economic fragmentation (an analytics of economic integration), the threat of El Nino and climate change, debt-distress risk, contraction of global Manufacturing PMI, and rising world oil prices.

Global economic growth is still weak and slow and uneven, in 2023 it is estimated that it will only grow 2.9 percent and in 2024 it will decrease to 2.8 percent.

This global economic slowdown will increase the risk of achieving Indonesia's economic growth in the fourth quarter of 2023. For 2024, an increase in global risk is also expected to affect Indonesia's economic growth which is targeted to be able to reach 5.2 percent.

Indonesia has good economic fundamentals, because national economic growth is able to record a figure above 5 percent for seven consecutive quarters.

Meanwhile, Indonesia's inflation in September 2023 was able to be maintained at the level of 2.28 percent (yoy) and became the lowest since February 2022.

"The slowdown in the world economy and various global risks and uncertainties have the potential to increase the risk for achieving Indonesia's economic growth targets in the 4-2023 quarter and in 2024," he said in his official statement, Sunday, October 22.

To be able to achieve the economic growth target in the range of 5.3 percent (yoy) in 2023, it is estimated that the necessary investment needs are IDR 6,189.10 trillion with the majority of investment portion from the public at 84.7 percent, then from the Government at 9.7 percent, and the rest from Government-Owned Enterprises.

Meanwhile, to achieve the 5.2 percent economic growth target (yoy) in 2024, the necessary investment needs of various economic actors are in the range of IDR 6,900 trillion.