John Riady Yakin Indonesia Jauh Dari Ancaman Crisis

John Riady (photo: Doc. Antara)

JAKARTA - The Indonesian economy is believed to be growing solidly and healthy and far from the threat of a crisis.

This is due to the synergistic economic policy of the government and regulators in responding to dynamic global challenges.

Lippo Group Executive Director John Riady said banking turmoil in the United States and Europe could not be separated from current global conditions, especially high inflation and pressure developed countries, so the central bank raised interest rates to fight inflation.

"If I say, currently, the national economy is very healthy. We also have to appreciate the performance of the economic team, both Mrs. Sri Mulyani (Minister of Finance) and Bank Indonesia as well as other institutions that are able to synergize," he said, quoting Antara.

However, the national entrepreneur revealed that the alert alarm must still be turned on. Especially now that the world community is really worried about the impact of inflation.

Citing the results of the Ipsos survey at the end of March, inflation became the world's largest concern, especially in 12 countries experiencing price fluctuations such as France, Germany, the United Kingdom, Poland, Turkey, and the United States.

"Well, at this time, price fluctuations have also been suppressed by various government policies. This is very good," said John.

On the other hand, when the Fed and the European Central Bank increased interest, a number of banks fell, inflation in Indonesia was maintained.

"So, that's what's going on and all the crises we've faced in the last nine months, the root of the problem is inflation. When the supply of money seems to be being sucked in by the central bank, it looks like there are victims of liquidity, so Silicon Valley Bank falls," he said.

John believes that the policy mix implemented by the Ministry of Finance to Bank Indonesia's steps in monetary stabilization is still effective in maintaining inflation and even successfully maintaining at three percent.

This, he continued, is reflected in the implementation of BI's benchmark interest policy which always targets core inflation control.

Currently, with a benchmark interest rate of 5.75 percent, BI is targeting core and IHK inflation according to the target.

Overall, John assesses that the current national economy is very solid, making it possible to achieve the growth target in the range of five percent this year.

As another positive note, for a decade, Indonesia has also been out of the vulnerable economic zone.

So far, Indonesia can still enjoy the blessings of commodities as reflected in the occurrence of the trade balance surplus.

"So, this is the best policy result from Mrs. Sri Mulyani, plus also luck in terms of exports, we need both," said John.

Previously, Minister of Finance Sri Mulyani said all authorities in the country were always quick to respond to existing global developments.