Airlangga Pede Ekonomi Indonesia Grows Above 5 Percent

Coordinating Minister for the Economy Airlangga Hartarto (Photo: dock. Antara)

JAKARTA - The Indonesian government is optimistic that domestic economic growth will certainly increase until 2024.

Coordinating Minister for Economic Affairs Airlangga Hartarto said he was optimistic that Indonesia's 2023 economic growth would continue to be maintained at the level of 5 percent and in 2024 it would grow 5.2 percent. Even though currently faced various risks that cause the global economy to weaken.

"In the midst of global uncertainty, Indonesia's economic fundamentals are still maintained. Indonesia's economy has grown stable in the range of 5 percent and is above the growth of developed and developing countries," said Airlangga on the agenda of the National Seminar for the Outlook Indonesia Economy, Friday, December 22.

In addition to maintained economic growth, Airlangga said that the inflation rate was still under control, as reflected in the inflation record which continued to show a decline from January 2023 of 5.28 percent, then to the level of 4 percent in May 2023, and to only 2.86 percent in November 2023.

"Indonesia is one of the countries that has succeeded in returning inflation to its target," said Airlangga.

Airlangga said that in terms of fiscal health, the ratio of the government's debt to gross domestic product (GDP) is still at a safe level of 38.11 percent in December 2023.

According to Airlangga, the pressure on the debt ratio is still below the maximum threshold at 60 percent stipulated in the State Financial Law.

"The government's debt ratio is at a safe level. Economic growth is mountain climbing, while controlled inflation is a shady cloud for climbers," he said.

Airlangga said that this achievement was the result of President Joko Widodo's direction to realize a synergistic collaboration between the fiscal, monetary and real sectors as well as support from all Indonesian people.

"Fiscal policy, in this case, has an important role as a shock absorber that is responsive to the dynamics of the economy," said Airlangga.

Airlangga explained that monetary policy also plays a strategic role in maintaining stability and supporting sustainable economic growth.

According to Airlangga, with Indonesia's ability to maintain economic stability at the international level, this shows its capacity.