UI Economists: The Government Must Strengthen Domestic Economy To Face Global Challenges 2023

Economist from the University of Indonesia Teguh Dartanto. (Photo: Doc. Antara)

JAKARTA - Economist from the University of Indonesia (UI) Teguh Dartanto appreciates the government's performance in maintaining the national economy.

However, according to him, the challenges next year are different, so the government must carry out a number of anticipations and mitigation.

"We need to appreciate the government's performance in maintaining various macroeconomic indicators of economic growth, inflation, relatively safe and controlled exchange rates amid global economic turmoil and rising fuel prices," said Teguh, Wednesday, December 14.

Teguh said, next year, challenges will not only come from global, but also the target of the state budget deficit to a maximum of 3 percent of the state budget.

"Next year, the government will face very different challenges because the state budget deficit is a maximum of 3 percent of GDP, the threat of a global recession so that the government must anticipate and mitigate through strengthening the domestic economy," said Teguh.

Currently, he continued, the domestic economy is the largest backbone of the Indonesian economy, where household consumption accounts for 54.42 percent of Gross Domestic Product (GDP).

For this reason, it is the government's great task to keep people's spending growing.

"Among other things, the assistance of MSMEs, social assistance, protection of workers from layoffs, and improvement of the Village Fund need to be done to move the domestic economy," said Teguh.

Previously, Coordinating Minister for Economic Affairs Airlangga Hartarto, explained a number of government achievements in maintaining the national economy.

National economic growth in the third quarter managed to penetrate the figure of 5.72 percent (yoy).

This impressive growth was also followed by a decline in inflation to a point of 5.42 percent (yoy) in November 2022.

Then positive foreign exchange reserves, trade balances that have experienced a surplus for 30 consecutive months, and positive balance payments also strengthen Indonesia's economic signal in a very good position.

Therefore, the General Chairperson of the Golkar Party is optimistic that next year, the Indonesian economy can remain strong and even be expected to take off.

"Of course next year is Indonesia's gamble, because if we can handle the challenges that will be next year, then we hope that Indonesia can take off the next take off. Because our challenges for the past two years we can survive, it's only next year we have to be able to survive and at that time there are not many countries that can take off like Indonesia," said Airlangga.