Global Uncertainty Haunted, Airlangga Hopes Economic Growth Can Be Maintained

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Aris Nurjani/VOI)

Coordinating Minister for Economic Affairs Airlangga Hartarto said this year, Indonesia is still facing a number of risks and uncertainties, such as volatility in commodity prices, high interest rates in developed countries such as the United States, as well as China's economic growth which is still below expectations.

"We are also facing the challenges of climate change that we have seen in many parts of the world. With this, the global economic outlook is estimated to be still below the COVID level, around 3.2 percent. But Indonesia is still able to maintain economic growth," Airlangga said in the Indonesian Business Council (IBC) Business Competitiveness Outlook 2025, Monday, January 13.

According to Airlangga, the government hopes to maintain economic growth as last year at around 5 percent when compared to neighboring countries such as Thailand around 3 percent, and South Korea 1.5 percent, then Indonesia still maintains good growth.

"If we look at the indications of PMI in December, we are in a growth where the expansion is 51.2 percent. In addition, the consumer index and the real sales index also grew positively," he said.

On the same occasion, IBC Chief Operation Officer William Sabandar said that the Indonesian Business Council (IBC) emphasized the importance of four approaches that the government needs to take to maintain economic growth, namely strengthening collaboration with the business world and attracting investment.

William conveyed that the four approaches include governance reform to improve ease of doing business, private and government collaboration in infrastructure development and improving socio-economic quality, increasing industrialization through downstream strategies, and encouraging a green economy.

According to William, the government will carry out a very tough big mission, namely that by 2025 the new government will seek alliances and attract massive investments and require strong efforts.

"IBC believes that achieving this mission governance must be reformed and innovation must be pursued," he said.

William added that reformed governance is needed to build trust, ensure program achievements, and prevent leaks. Meanwhile, innovation will help open up hidden opportunities and help secure Indonesia's regional competitiveness.