Chatib Basri: Macro Stability Is A Good Basin For Investment In Indonesia

Former Finance Minister Chatib Basri (Photo: Antara)

JAKARTA - Senior economist who is also the former Minister of Finance in the era of President Susilo Bambang Yudhoyono in the 2012-2013 period, Chatib Basri believes that Indonesia's economic growth in the future will remain strong because of the policy factor for macroeconomic stability which is quite good.

"When viewed from the fiscal side and monetary policy, both the monetary authority and fiscal authorities are able to provide macro stability for a good foundation for the entry of investment into Indonesia," Chatib said during the East Asia and Pacific Economic Update, on Zoom, Thursday, April 4.

Chatib conveyed another important factor in maintaining Indonesia's economic growth, namely stemming from the high consumption of the private sector and the government's success in maintaining and controlling inflation.

"Indonesia is able to maintain relatively low inflation compared to many countries in the region," he said.

According to Chatib, budget deficit management is also one of the differential factors, due to the maintenance of Indonesia's budget deficit which is below 3 percent of GDP due to the accumulation of tax revenues.

In addition, the World Bank in its explanation estimates that economic growth in the East Asia and Pacific regions will move quickly. Although, other regions in other parts of the world experienced a deeper slowdown before the pandemic era.

The World Bank estimates that the economic growth of the East Asia and Pacific regions is projected to fall to 4.5 percent in 2024. Whereas previously, it estimated that the economy in the East Asia and Pacific regions could grow by 5.1 percent.

Vice President of the World Bank for East Asia and the Pacific, Manuela V. Ferro said that the East Asia and Pacific regions have made a major contribution to world economic growth.

"East Asia and the Pacific have made a major contribution to world economic growth, even as the region faces a more challenging and erratic global environment, an aging population, and the impact of climate change," he said.