Airlangga Claims Investor Confidence Amid Iran-Israel Conflict Is Quite Good

Coordinating Minister for Economic Affairs (Menko) Airlangga Hartarto. (Photo: Theresia Agatha/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto assessed that investor confidence in the Indonesian economy is quite good in the midst of global market turmoil due to geopolitical excalation in the Middle East.

According to Airlangga, this can be seen from the target of Indonesia's economic growth, which is still much higher than global economic growth.

"It is estimated that 5.1 percent while the global growth this year is 3.2 percent so Indonesia is far above the global economic and global economic developments are expected to remain in the fall trend, while Indonesia is 5.1 percent in 2025 and developing countries are 4.2 percent," Airlangga said at a press conference on the development of economic issues at the office of the Coordinating Ministry for the Economy, Thursday, April 18.

In addition, Airlangga said that the APBN was still a shock absorber, especially through the subsidy budget and fuel compensation.

"So the subsidy and compensation for fuel is relied on, it remains a shock absorber so that this is not passed on to the public," he said.

Airlangga said that the government continues to deploy direct cash assistance (BLT) to mitigate food risk, this is prepared to control food inflation.

On the other hand, Airlangga said, the government remains calm in dealing with geopolitical tensions in the Middle East because the small potential for war is widespread so that it has an impact on the global economy.

"So geopolitically, there is relatively nothing, so because there is nothing, we are calm," he said.

Airlangga continued, the potential for disruption that may occur is related to logistics, supply chains and interests in the Strait of Hormuz because the Strait is a shipping route for oil tankers that carry about 30 percent of the world's crude oil.

"We know the Hormuz Strait is important, especially for oil lines and 30 percent of oil trade is there. But we also know there is a US base there, in Qatar," he said.