Sure Indonesia Tak Resession In 2023, Minister Of SOEs: We Are Consistent To Grow 5 Percent Until 2045

SOE Minister Erick Thohir. (Photo: Doc. Ministry of SOEs)

JAKARTA - Minister of State-Owned Enterprises (BUMN) Erick Thohir believes that Indonesia will not fall into a recession. Erick is actually confident that the Indonesian economy will grow at the level of 5 percent.

Erick's statement follows the World Bank or World Bank's forecast that there will be a global economic recession in 2023. "We are not experiencing a recession. So if ladies and gentlemen who are present today are sluggish, it means that they have taken a wrong position because Indonesia is not in recession," he said at the "Investor Daily Summit 2022" quoted Wednesday, October 12.

Erik also admitted that he was optimistic that Indonesia's economic growth would consistently grow at the level of 5 percent until 2045. It is this estimated consistency in economic growth that brings Indonesia's opportunity to become the 4th largest economy in the world.

"We will continue to grow 5 percent until 2045, and will position us as the country with the largest economy in the world. If not ranked 5, ranking 4," he said.

Segara Institute Executive Director Piter A. Redjalam revealed that Indonesia's condition is still quite good and is believed to be able to survive the global recession. The reason is, Indonesia is different from countries that rely too much on exports.

"Indonesia's economy relies more on domestic consumption which is expected to improve as the pandemic subsides. In addition, on the export side, commodity prices will still be helped," he said, Tuesday, October 11.

Even so, Piter admits that the global recession will certainly hold back or even lower commodity prices. However, he said, this does not make commodity prices fall. Commodity prices will remain quite high and benefit Indonesia, which relies on commodities.

With this condition, said Piter, even when affected by the global recession, Indonesia is expected to be able to survive even though economic growth will slow down.

"Even if Indonesia is affected by the global recession, it is estimated that it will only make our economic growth slow down and cannot reach the target of more than 5 percent. That is a bad scenario. Our best scenario can still grow above 5 percent," he said.