Coordinating Minister Airlangga: European Parliamentary Think Tank The Value Of The Indonesian Economy Grows Stable

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Doc. ANTARA)

Coordinating Minister for Economic Affairs Airlangga Hartarto said that two European Parliamentary THINK tank institutions, namely the European Parliamentary Research Service (EPRS) and the European University Institute (EIU) assessed that the Indonesian economy was able to grow stably amid global economic uncertainty.

The European Parliament's THink tank assesses that the Indonesian economy has succeeded in maintaining sustainable growth after the economic recession in 2020. This assessment is strategic because the data released by them is used as a reference for members of the European Parliament," Airlangga said as quoted by ANTARA, Tuesday, July 16.

From the results of the two European Parliamentary think tanks, in general Indonesia excels in various indicators.

In terms of direct foreign investment or (Foreign Direct Investment/FDI) and inflation rate, Indonesia is more stable over time compared to European Union countries.

In 2023, Indonesia's inflation rate was recorded at only 3.7 percent, while the European Union reached 6.3 percent.

In terms of the Human Development Index (HDI), it is also better recorded.

HDI Indonesia is at the level of 74.39 points in 2023, an increase of 0.84 percent compared to 2022 which was 73.77.

Meanwhile, according to the trend, the average growth of HDI Indonesia during 2020-2023 is 0.72 percent per year.

Airlangga explained that Indonesia itself is included in the 8th largest trading partner for the European Union. Meanwhile, the European Union for Indonesia is the fourth largest trading partner for goods after China, Japan, the United States and Singapore, with a portion of 5.7 percent.

"The trade between the European Union and Indonesia in general shows an increasing trend, with a sharp increase occurring after the global economic slowdown in 2020," he explained.

Airlangga hopes that the increasing trend of trade between Indonesia and the European Union as well as the recognition of Indonesia's economic growth in the eyes of the world can contribute to the completion of the Indonesia-European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) negotiations.

This is important for the commitment of Indonesia and the European Union which have agreed to encourage the IEU-CEPA to be an alternative solution to economic problems, trade and investment between the two parties.

As for entering the 19th round of negotiations, Indonesia itself continues to make optimal efforts so that the IEU-CEPA negotiations can be completed immediately and the benefits can be felt for the economy of both parties.

Until now, the Government continues to strive for the best economic policies for Indonesia. Strengthening fiscal and monetary policy synergies for economic stability through coordination between fiscal, monetary, and real sector policies also continues to be carried out regularly and with care.