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Indonesia's Economic Resilience Shines at Nikkei Forum 2024

Sat, 25 May 2024 10:38 | News |   Editorial INTI


Indonesia's Economic Resilience Shines at Nikkei Forum 2024

Tokyo, INTI – Continuing the Nikkei Forum 2024 in Tokyo, Indonesian Coordinating Minister Airlangga Hartarto, representing President Joko Widodo, addressed global leaders, economists, and academics from the Asia-Pacific region. Under the theme "Future of Asia," Minister Airlangga showcased Indonesia's efforts in maintaining economic resilience amidst global uncertainties and presented various investment opportunities in the country.

"During the Covid-19 pandemic, unprecedented as it was, Indonesia's economy managed to perform among the best globally. Since the second quarter of 2021, Indonesia has maintained an average year-on-year economic growth rate of around 5%," stated Minister Airlangga.

Indonesia's economic growth in the first quarter of 2024 reached 5.11% yoy, with April 2024's inflation rate at 3.00% yoy, staying within the targeted range of 2.5±1%. Furthermore, Indonesia's GDP per capita has been on an upward trajectory since the pandemic, aiming for a per capita income of USD 5,500 this year.

"Indonesia promotes stable economic growth through political and social stability. This is highly favorable for investors, businesses, and economic stakeholders," added Minister Airlangga.

The Indonesian government is currently transitioning gradually to ensure the sustainability of various programs. President Joko Widodo's primary agenda of economic transformation will continue to be implemented to achieve the Vision of Indonesia Emas 2045. The economic transformation policy aims to avoid the middle-income trap over the next 20 years through two scenarios: Transformative, targeting 6% annual economic growth to escape the middle-income trap by 2041, and Optimistic, aiming for 7% annual economic growth to escape the trap by 2038.

In addition to economic transformation policies, structural reforms will continue to be carried out by the Government to maintain an investment-friendly environment through ease of doing business, including the full implementation of the Omnibus Law.

"To support structural reforms, Indonesia is in the process of becoming an OECD member. By adopting OECD standards, we aim to support the achievement of a GDP per capita target of USD 30,300 by 2045," stated Minister Airlangga.

Furthermore, Indonesia continues to combine conventional growth engines such as infrastructure development, food security, and international cooperation with new growth engines strengthened by massive industrialization, digitalization, and energy transition. This combination will be supported by strengthening economic resilience and empowerment.

International cooperation is also a priority for the Indonesian government, including OECD accession. Indonesia hopes to become a full member of the OECD within 3 years. Policy reforms based on OECD standards will not only enhance policy predictability and transparency but will also help Indonesia set global economic standards, becoming a benchmark for sustainable and quality investments.

During the event, Minister Airlangga also highlighted Indonesia's active engagement in various economic cooperations such as the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) and the Indo-Pacific Economic Framework (IPEF) to expand markets and boost investment.

In conclusion, Minister Airlangga unveiled Indonesia's downstream policy to create added value. Indonesia has played a significant role in critical minerals for electric vehicle batteries in the automotive industry and renewable energy. Nickel, copper, bauxite, and tin possessed by Indonesia are part of the renewable industry, aerospace, and even defense industries.

"Regarding energy transition, as one of the initiators of the Asia Zero Emission Community (AZEC), Indonesia emphasizes the importance of inclusive financing for decarbonization cooperation and low-carbon technology transfer. Currently, there are at least 12 real cooperation projects within the AZEC framework, with three of them already in the implementation stage," concluded Minister Airlangga.

Indonesia Opportunities Investment +23