JAKARTA - Chairman of the National Economic Council (DEN) Luhut Binsar Pandjaitan reported to President Prabowo Subianto that the results of economic simulations showed that the national economy was projected to remain stable in the next three months.
"Based on the comprehensive simulation we have conducted, the condition of our economy in the next three months is still very safe and well maintained. Our economic fundamentals are strong," said Luhut in a written statement in Jakarta, Antara, Wednesday, April 22.
However, in accordance with the president's instructions, the government has prepared various anticipatory policy scenarios as a mitigation step if geopolitical tensions last longer than expected.
One of the main focuses of the policy is to anticipate a potential spike in energy prices, especially related to the widening gap between global crude oil prices and the selling price of fuel oil (BBM) in the country.
DEN also emphasized the importance of maintaining the supply chain of strategic commodities, such as sulfur, which plays an important role in the sustainability of the nickel industry's downstream program as well as the development of the national electric vehicle (EV) battery ecosystem so that it is not disrupted by global dynamics.
In terms of fiscal resilience, the government ensures that the State Budget (APBN) remains in a healthy and controlled condition. The fiscal deficit will be maintained below 3 percent of the Gross Domestic Product (GDP) through spending efficiency and the optimization of receipts from flagship export commodities such as coal and palm oil.
"The public and the business world need not worry, the state budget is still very under control. The deficit will be maintained below 3 percent through appropriate spending efficiency, and maximizing the momentum of export commodity prices to strengthen state revenues," said Luhut.
To maintain the momentum of real sector growth, the government will also accelerate deregulation as a non-fiscal stimulus. Completing structural obstacles in the field is a priority so that the licensing process is simpler, more efficient, and provides legal certainty for business actors.
Furthermore, the government views the global geopolitical situation not only as a challenge, but also as a strategic opportunity. The acceleration of government digital transformation (GovTech) and the strengthening of Indonesia Financial Center development initiatives continue to be encouraged to capture the potential for shifting global capital flows.
"We are not only talking about survival, but how to take advantage of this situation. The acceleration of GovTech and the development of the Indonesia Financial Center are our strategic steps to take advantage of the shift in global capital flows," said Luhut.
With a solid collaboration between the government and the business world, Luhut is optimistic that this momentum can be a catalyst for a leap in national progress.
The English, Chinese, Japanese, Arabic, and French versions are automatically generated by the AI. So there may still be inaccuracies in translating, please always see Indonesian as our main language. (system supported by DigitalSiber.id)
