Accompanying Jokowi To Receive IMF Officials, Sri Mulyani Ensures Indonesia's Economy Is In Good Condition: Debt To GDP Ratio Of 42 Percent, Foreign Exchange Reserves 135 Billion US Dollars

Finance Minister Sri Mulyani (right) with President Jokowi (Photo: Doc. Palace Press Bureau)

JAKARTA - Minister of Finance (Menkeu) Sri Mulyani said that the Indonesian economy was in good condition from several aspects, such as economic performance and growth. This indicator is reflected in the balance of payments, which experienced a trade surplus for 26 consecutive months, and inflation which was below 5 percent.

This was conveyed by the Minister of Finance when accompanying President Joko Widodo (Jokowi) when receiving the International Monetary Fund (IMF) delegation at the Bogor Presidential Palace, West Java last weekend.

"The most important thing is the synchronization and cooperation of fiscal monetary policy from Bank Indonesia and the Ministry of Finance to be able to keep working in harmony because this will help maintain the momentum of Indonesia's economic recovery," she said in a press statement quoted Monday, July 18.

According to the Minister of Finance, during the meeting, IMF Managing Director Kristalina Georgieva expressed her appreciation to the Indonesian government for handling the domestic pandemic.

"Furthermore, we certainly hope that Indonesia's improving condition will be maintained because the President will host the (G20 Summit) in November," she said.

On the same occasion, Coordinating Minister for the Economy Airlangga Hartarto said that during the meeting the President conveyed a number of things to the IMF regarding the economic situation in Indonesia.

"Indonesia's economy is relatively good. We have a debt to GDP ratio of around 42 percent, the deficit is still around 4 percent and the balance of trade continues to be positive for 26 months. In addition, Indonesia has foreign exchange reserves of 135 billion US dollars," said Coordinating Minister Airlangga.

He also explained that this economic situation makes the potential for a recession smaller than other countries, which is around 3 percent. However, the government hopes that the IMF will continue to support and provide a positive narrative for the Indonesian economy, especially in the face of the global crisis.

"We are very worried about rising inflation conditions in various countries. Interest rates will enter a new regime, namely an increase in global interest rates and of course will greatly affect the investment that is needed by Indonesia," he said.

In addition to IMF Managing Director Kristalina Georgieva, the Director of the Asia and Pacific Department of the IMF Krishna Srinivasan, and IMF Senior Representative for Indonesia James Walsh were also present.