Airlangga Reveals That Indonesia's Economic Conditions Are Stable After The 2024 General Election, Inflation Is Controlled At A Range Of 2.5 Percent

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. Coordinating Ministry for the Economy)

Coordinating Minister for Economic Affairs Airlangga Hartarto discussed the sustainability of Indonesia's economic programs and policies in the new government after the election at the British business association and think group in the Asia House.

The British business community in Asia House, which is dominated by the financial and banking sectors, regularly invites ministers and high-ranking Indonesian policy makers to capture information on the dynamics of politics and the economy that are their investment compasses in Indonesia.

Airlangga said that Indonesia's current situation, which has held elections, was attended by more than 200 million voters in just one day and within three hours the election results were known through a quick account count with accurate results from manual calculations.

In addition, Airlangga said that Indonesia was successful in holding the 2024 General Election, where Indonesia was bigger than the Western European region and an additional 5 million inhabitants per year as Indonesia's great modality.

On this occasion, Airlangga also conveyed the latest developments in Indonesia's economy, developments in domestic politics, and the sustainability of policies after the 2024 election in the midst of uncertain geopolitical changes and the global environment.

Airlangga conveyed his insight into the prospect of Indonesia's economic growth where the Indonesian economy grew by about 5 percent over the last eight consecutive quarters.

"The Indonesian economy will grow above 5 percent in 2024 and beyond with a controlled inflation rate in the range of 2.5 percent plus minus 1 percent. The global business world's trust in Indonesia is also very high," he said in his statement, Tuesday, April 30.

Airlangga said this was evidenced by the good investment rating of various rating institutions.

For example, Moody's issued the Baa2 Stable Outlook for Indonesia on April 16, 2024, while Fitch and JCR rated BBB, stable in March 2024.

In addition, Airlangga said, the resilience of the external sector was also maintained, marked by foreign exchange reserves that remained high at 136 billion US dollars.

And Indonesia's trade balance also continues to record a surplus in the last 46 months (in February 2024 of 870 million US dollars).

Furthermore, the discussion also highlighted Indonesia's progress in achieving organizational access for Economic Cooperation and Development (OECD) as well as other economic partnerships.

Airlangga said that the process of accessing Indonesia to OECD is an important focus for the business world that is interested in economic cooperation with Indonesia.

"The accession process is expected to be a catalyst to encourage an increase in Indonesia's per capita income," he said.

In addition, Airlangga conveyed that Indonesia's membership and the alignment of regulations with OECD standards are also expected to have a positive impact on the general public, such as increasing investment value, encouraging MSMEs, to improving the quality of human resources.

On this occasion, Airlangga also conveyed Indonesia's policies regarding its environment and sustainability.

"We are at the forefront of voicing serious concerns and disapproval of the EU Deforestation Free Regulation (EUDR)," said Airlangga.

Airlangga said that the implementation of EUDR would clearly harm and harm important commodities of Indonesian plantations and forestry such as cocoa, coffee, rubber, wood products, and palm oil.

According to Airlangga, the Indonesian government's move has received support from countries of the same opinion, one of which is the United States (US).

"A total of 20 out of 27 Ministers also called for the postponement of the EUDR, which was conveyed at the Agricultural Fisheries Council Configuration Council (AGRIFISH) Meeting," he said.

Regarding the results of the 2024 election, Airlangga explained about the continuity of economic policy and political stability in Indonesia.

"The Indonesian government will focus on improving specific policies such as strengthening the role of manufacturing through strengthening the EV ecosystem, Special Economic Zones (SEZs) and Industrial Estates, downstreaming commodities, and other products," he explained.