Coordinating Minister for the Economy Airlangga Hartarto assesses that Indonesia can get out of the global recession next year.
Airlangga reasoned that various international institutions had projected that the Indonesian economy would be able to grow 4.8 percent to 5.1 percent in 2023.
"Several institutions also agreed with Indonesia that Indonesia could become the bright spot in the dark," said Airlangga, quoted from Antara, Monday, November 7.
He explained, there are several steps taken by the government to avoid a global recession in 2023, one of which is by maintaining purchasing power and strengthening the rupiah exchange rate.
The strengthening of the Garuda exchange rate was carried out by encouraging the Export Result Foreign Exchange (DHE) and collaborating with local currencies or Local Currency Settlement (LCS) with several countries so that Bank Indonesia (BI) could encourage restrictions on the need for foreign exchange.
In addition, structural reforms carried out through the implementation of the Job Creation Law will continue.
Airlangga said that the resilience of the Indonesian economy was around 50.38 percent from domestic consumption, when viewed from the expenditure component.
Meanwhile, dependence on exports is only 26.23 percent so it doesn't really matter.
On the inflation side, Indonesia has recently experienced deflation, so economic growth has become more qualified because economic growth is slightly above the inflation rate.
"We also see that there has been an increase in investment, so of course the absorption by domestic investors is a cushion for the issuance of foreign capital," he said.
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