ADB: Economic Reform Keeps Indonesia's Economic Fundamentals Strong

Illustration (Photo: Doc. ANTARA)

JAKARTA - Director of Asian Development Bank (ADB) for Indonesia Jiro Tominaga economic reforms, including in terms of efficiency and productivity, must continue to maintain the fundamentals of the Indonesian economy and encourage the progress of the Indonesian economy.

In the history of Indonesia's economy, economic reform has proven to bring Indonesia back and grow after being hit by the 1997 Asian financial crisis.

"Since then serious reforms have been carried out, strengthening the Indonesian economic policy framework, and these efforts must continue to be carried out, so that they always increase, especially in terms of efficiency, productivity," said Jiro as quoted by ANTARA, Monday, May 6.

Reform is also carried out to develop a business environment or business world that is increasingly conducive and enthusiastic so that it can increase its contribution to Indonesia's economic growth.

Currently, Indonesia's economy remains resilient amid rising global uncertainty.

According to the Central Statistics Agency (BPS), the Indonesian economy grew by 5.05 percent cumulatively throughout 2023. All business fields grew positively in 2023.

Economic growth in the first and second quarters of 2024 is estimated to be higher than the fourth quarter of 2023, supported by strong domestic demand.

In addition, according to Jiro, economic reform must also encourage new sources of sustainable economic growth. This was done to respond to the issue of climate change which had an impact on economic sustainability and development progress both in Indonesia and globally.

A new source of sustainable economic growth including a green economy with a source of growth from the green industry. Policy making needs to intensify this, and Indonesia continues its efforts to build a green economy.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto emphasized the sustainability of economic reform to make Indonesia a developed country in 2045.

Indonesia targets to become one of the developed countries by 2045. We can achieve higher growth by implementing economic reform policies and getting out of the middle income trap," said Coordinating Minister Airlangga in the Southeast Asia Health Security Roundtable Series in Jakarta on November 29, 2023.

On that occasion, Coordinating Minister Airlangga explained that his party had formulated a strategy to accelerate extreme poverty alleviation and target extreme poverty to 0 percent by 2024.

The main strategy carried out is to combine Social Protection with Community Empowerment Programs and reduce poverty pockets.

This is based on data from the Central Statistics Agency (BPS) which recorded that the extreme poverty rate in March 2023 was recorded at 1.12 percent.

Not only focusing on strengthening the national economy, Indonesia also strengthens its position in the global arena by participating in the launch of the Pandemic Fund during the 2022 Indonesian G20 Presidency as a financial architecture for preparedness, prevention, and disease response.