Prospects Of A Strong Domestic Economy To Become A Capital For The Republic Of Indonesia To Face Global Uncertainty

The government through the Ministry of Finance (Kemenkeu) stated that the domestic economic outlook is still strong and is projected to grow stable in the first quarter of 2023.

Minister of Finance (Menkeu) Sri Mulyani said that this assumption was supported by the performance of the rupiah and the State Securities (SBN) market.

The 'Purchasing Manager Index (PMI) of Indonesian manufacturing is still in the expansion zone with China and Vietnam which are also recovering, while most major countries are still in the contraction zone," he said at the State Budget press conference, quoted Wednesday, March 15.

However, the Minister of Finance revealed that the turmoil and sentiment in the financial market needed to be observed. It is stated that global PMI is starting to improve even though it is not yet expansive.

The commodity price is still volatile with energy prices in a downward trend. The global risk is also still overshadowed by the high inflation in developed countries which is still far above the benchmark interest rate, while in developing countries, inflation is already below the benchmark interest rate," he said.

The Minister of Finance himself explained that one of the valuable assets owned by Indonesia was the APBN surplus of IDR 131.8 trillion in February 2023 or equivalent to 0.63 percent of Gross Domestic Product (GDP).

"We must increase vigilance and mitigation is still carried out to anticipate uncertainty throughout 2023," he said.