Indonesia's Economic Resilience Amid Global Challenges

The Asian economy is projected to remain resilient in the face of global economic challenges, despite ongoing geopolitical turmoil. The conflict in the Middle East is expected to disrupt supply chains worldwide, impacting growth in emerging Asia. However, Indonesia, under the leadership of President Joko Widodo, stands out as a beacon of stability and growth.

Airlangga Hartarto's Keynote Speech

At the 2024 Spring Forum of the Asia Business Council, Coordinating Minister of Economic Affairs Airlangga Hartarto delivered a keynote speech themed "Developing Asia: New Engines for Growth". Amidst global economic instability, Hartarto highlighted Indonesia's remarkable economic performance, with growth exceeding 5 percent for the last eight consecutive quarters.

"We expect Indonesia's economy to grow above 5 percent in 2024 and beyond, with inflation remaining under control. Investor confidence in Indonesia's economic resilience remains strong," said Airlangga Hartarto.

This confidence is reflected in the decisions of international rating agencies to maintain Indonesia's Investment Grade status. Moody's issued a Baa2 Stable Outlook rating in April 2024, while Fitch and JCR rated Indonesia as BBB (stable) in March 2024.

Resilient External Sector

Indonesia's external sector remains resilient, with high foreign exchange reserves of US$140.4 billion and a consistent trade surplus for the last 46 months, reaching $870 million in February 2024. This strength positions Indonesia well for continued economic growth and progress towards its ambitious Indonesia Gold 2045 vision.

Path to OECD Membership

Indonesia's aspirations extend beyond economic stability to global recognition and influence. The country is in the process of joining the Organisation for Economic Co-operation and Development (OECD), potentially becoming the group's third Asian member. This accession process will catalyze policy refinement, enhancing investment, productivity, and technology-driven connectivity.

Driving Sustainable Growth

Indonesia's policy focus encompasses various sectors, including manufacturing, digital transformation, and renewable energy. The 2030 Digital Economic Development Strategy aims to improve competitiveness and productivity, while efforts towards net-zero emissions underscore Indonesia's commitment to environmental sustainability.

As Indonesia navigates global challenges and pursues inclusive, environmentally friendly growth, its resilience and proactive approach position it as a key player in the global economy.