Economist: Indonesia Is Doing Well, Economic Growth Is 5.4 Percent

Illustration (Photo: Doc. Antara)

JAKARTA - Indonesia is faced with global uncertainty and the dynamics of a global recession.

Although the dynamics of the global recession have emerged in the country, the national economy is able to show off.

Data from the Central Statistics Agency (BPS) recorded that the Indonesian economy in the second quarter of 2022 compared to the second quarter of 2021 grew by 5.44 percent year on year (yoy).

Bank Indonesia (BI) responded that this increase was supported by increasing domestic demand, especially household consumption, and improved export performance.

CORE Indonesia economist, Piter Abdullah Redjalam said that Indonesia was able to face the storm of recession dynamics.

He analyzes that the national economy is relatively safe and is heading for a post-pandemic recovery period.

"The future of the global economy is indeed dark, due to uncertainty. However, Indonesia's condition can actually be said to be fine. With 5.44 percent growth, we are in the process of economic recovery, towards improvement. At least we are better than Malaysia and Singapore." he said during a discussion in Jakarta, Tuesday, August 22.

Although Indonesia is strong against the current global economic conditions, Wealth Advisory Head of Bank UOB Indonesia, Diendy Liu, suggested that every individual should be vigilant by managing finances well.

Because, according to him, one way to prevent the public from being significantly affected by economic pressure is to carry out good financial planning in the midst of a situation of economic uncertainty.

“We have to measure our purchasing power as individuals. We have to start sorting out what we want to consume. There is something called net income after we pay taxes. From there we can allocate for our basic needs, including clothing, food, housing, including installments," he explained.

To be included in the category of individuals who are strong enough to withstand the pressures of the current economic dynamics, according to Diendy Liu, financial planning and building a financial portfolio are the keys.

He added that the public must also be aware of financial instruments based on a variety of safe options in order to avoid the impact of economic instability that can disrupt individual economic resilience.

In addition to strengthening financial planning, DANA's Head of Investment and Insurance, Ivan Kusuma, provides options for the public to strengthen their financial resilience by investing through fintech that has been officially registered with the regulator.

Because, according to him, the role of fintech in the current era is very significant in helping the community, especially in the investment sector.

"Based on the survey, Indonesia is the 4th highest smartphone user in the world. From this we can understand how important fintech is generally offered through smartphones. Fintech is not only easier, but also cheaper, because there are fewer parties involved. Second, fintech is more efficient. There are many choices as investment applications,” he said.

In fact, said Ivan, Bank Indonesia has supported the development of digital technology.

"BI alone supports the development of digital technology. This is illustrated by as of July 1, 2022, BI has increased the monthly electronic money limit from previously only Rp. 10 million, to Rp. 20 million. This is for registered users. So it can be said that fintech is very developed in terms of transactions. , volume, even from the regulator's point of view," he added.

Finance and Investment Practitioner Benny Sufami added that the current unstable economic condition should be utilized by the public to be more efficient and effective in managing their finances so that they can withstand economic pressures that can arise at any time.

“I also emphasize that the public must understand investment literacy. Because in the midst of current uncertainty, the economic crisis could come back. However, if we can all manage our finances well, then the negative impact of economic instability will not have a significant impact," he concluded.