The Retail Industry Is One Of The Encouraging The Indonesian Economy

Illustration (Photo: Doc. ANTARA)

Coordinating Minister for the Economy Airlangga Hartarto inaugurated the new management of the Indonesian Shopping Center Retailer and Rental Association (Hippindo) at the Coordinating Ministry for the Economy Office, Central Jakarta, Thursday, April 18, 2024.

Airlangga said the retail industry is likely to again face global economic turmoil due to the heated Iran-Israeli conflict. In fact, the business actors have not fully recovered from being 'wound'.

"If we see this Happindo hit during COVID-19. So if the wound is a deep wound, it can be seen from the hair of the management, the average is white," said Airlangga, at the location, Thursday, April 18.

Airlangga said Indonesia's economy is relatively good even though it is currently experiencing additional uncertainty due to tensions between Iran and Israel.

"Although we are experiencing additional uncertainty, it is not the first symptom of uncertainty. Because that uncertainty has been around since the (Russia-Ukraine) war, coupled with COVID-19. COVID-19 is gone, the war is not over yet, the crisis in Gaza is not over yet, plus tension between Iran and Israel. But we can add that Indonesia is resilient," he said.

According to Airlangga, Indonesia has a good mechanism in dealing with these conditions so that economic growth is relatively good and inflation is maintained at 2.5 percent plus minus 1 percent.

In addition, Airlangga conveyed that Indonesia's trade balance, foreign exchange reserves, to consumer confidence index (PMI) were positive.

"I hope that imports in a situation like now are not imports of consumptive products, use them domestically so of course we encourage domestic trade. Not with imported goods but with domestic goods themselves ready or not," he explained.

Airlangga hopes that the retail sector can be a driver of the domestic economy, because the domestic purchase rate is a support for the national economy..

"This economy depends on our retail, we want all of these retails to be made like modern retailers. And this modern retail is one of the outlets for basic needs and becomes a window for rising prices. So please modern retail to participate in maintaining price stabilization," he said.

Airlangga hopes that in the future the use of domestic products can be more massive so that Indonesia's dependence on imports is reduced.

Chairman of the Indonesian Shopping Center Retail and Tenants Association (HIPPINDO) Budihardjo Iduansjah said the retail sector had a big contribution to the economy, especially to increase domestic trade. Because this sector accounts for 52 percent for economic growth.

"The retail sector sector has a big contribution as one of the 52 percent backbone for domestic trade. So the importance of appropriate regulations for the retail and trade sectors in the country," he said.

Budihardjo said domestic trade would be the main target and focus in helping the government to suppress inflation.

"We will ensure that in this country we can help the government to suppress inflation as well, maintain HET. We will ensure that Indonesia's economic growth can be achieved," he said.