Coordinating Minister Airlangga: Indonesia Is Actively Strengthening Its Role In The Global Bank To Encourage Economic Growth

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

Coordinating Minister for Economic Affairs Airlangga Hartarto stated that Indonesia is actively strengthening its role in the global arena to encourage better economic growth and international partnerships.

"Under the leadership of President Prabowo Subianto, the Government continues to strive to encourage economic and social justice by balancing cooperation and strengthening foreign politics that is not in favor, free, and active," said Airlangga while giving a speech at the Gala Dinner with the ambassador of friendly countries held by the Indonesian Chamber of Commerce and Industry (Kadin) in Jakarta, quoted from Antara, Saturday, November 2.

Airlangga said that the proactive, coherent, and yield-based diplomacy to deepen economic integration continues to be carried out by Indonesia, one of which is through a commitment to accelerating access to The Organization for Economic Cooperation and Development (OECD).

In addition, The Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and fully implement Regional Comprehensive Economic Partnership (RCEP) and The Indo-Pacific Economic Framework (IPEF).

Although the implementation effort is a challenge, Indonesia itself has ratified the pillars in the IPEF.

In addition to these various international cooperation efforts, the Coordinating Minister also mentioned that President Prabowo Subianto has also targeted the completion of the Indonesia's European Union Comprehensive Economic Partnership Agreement (IEU-CEPA) and other free trades.

He said that in the future, the Government will actively continue to strive to strengthen cooperation between countries and open new markets, so that it is hoped that it can provide benefits for the community through job creation with an increasing labor market.

"I also want to convey that our Minister of Foreign Affairs has attended the BRICS and Indonesia meeting and also gave a signal that we are also in the process of BRICS," he explained.

With the implementation of all agreements that are being processed by Indonesia, continued Airlangga, this is a commitment for Indonesia that economic policies will be open and non-block.

"And we are working with all parties for the benefit of the Indonesian people and also the welfare of the Indonesian people," said Airlangga.

He said that over the past decade, the national economy has been able to be maintained to continue to grow solidly in the range of 5 percent and also accompanied by controlled inflation levels.

It is recorded that for the current month of October 2024, inflation is at 1.71 percent (yoy), where this figure is still in a controlled range, namely the range of 2.5:1 percent, as well as ending the recent monthly deflation trend.

Although various economic indicators have shown impressive results, various waves of global challenges that still color current economic conditions need to be anticipated, such as fragmentation in global trade to tensions over conflicts in Eastern Europe and the Middle East.

Facing these increasingly complex challenges, the Government continues to prepare a number of efforts to respond to dynamic global conditions.

"So we estimate that price volatility will occur, and the IMF reports that global output losses due to trade fragmentation range from 0.2 percent to 7 percent of GDP," said Airlangga.

Airlangga added, as one of the growing strategic global players, Indonesia is actively leading and participating in initiatives to take advantage of geopolitical and geoeconomic assets to pursue opportunities and mitigate risks.