Coordinating Minister Airlangga Is Confident That The Indonesian Economy Continues To Strengthen In The Midst Of Increasingly Intense Global Pressure

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Doc. Coordinating Ministry for the Economy)

JAKARTA – Coordinating Minister for the Economy Airlangga Hartarto stated that Indonesia's economic outlook remains on the path of optimism despite global developments that have the potential to put pressure on recovery efforts.

According to him, a number of macro indicators are in stable condition with a smaller chance of a recession compared to other countries.

"The government remains optimistic that in the period throughout 2022 the economy can grow by 5.2 percent year on year (yoy)," he said in a press statement quoted by the editors on Wednesday, August 3.

Airlangga added that this positive signal was supported by the synergy of health and economic policies that were able to encourage increased consumption, investment and exports.

"Economic growth will also depend heavily on controlling the pandemic and appropriate economic policies, including fiscal and monetary policies. If this strategy can be implemented well, the recovery process can be stronger, create significant job opportunities, and be ready to digitally transform in many fields in the future," he said.

For the record, in the first quarter of 2022, Indonesia's economic growth was able to touch 5.01 percent. On the consumption side, the Consumer Confidence Index (IKK) and retail sales continued to grow so that they could become incentives for the industry to continue to increase production.

This is also reflected in the Purchasing Manager Index (PMI) which continues to record expansion for 11 consecutive months. At the same time, amid rising global inflation, Indonesia's inflation as of July 2022 was 4.94 percent and is claimed to be relatively under control when compared to other countries such as Germany, which experienced inflation of 7.5 percent or France at 6.1 percent.

From the external side, Indonesia has well-maintained resilience through a trade balance surplus for 25 consecutive months. Even in the January-June 2022 period, the surplus has reached 24.8 billion US dollars, or double the surplus in the same period last year.

“In the medium-long term, the Government of Indonesia will continue to promote economic growth through the Grand Strategy for Sustainable Development. This is supported by solid economic fundamentals and has been able to return to pre-pandemic levels, in line with increased mobility and bright prospects for key indicators," concluded Coordinating Minister Airlangga.