COORDINATING MINISTRY FOR ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS CONFERENCE

HM.4.6/54/SET.M.EKON.3/02/2023

Jakarta, 14 Februari 2023

Indonesia has successfully weathered various economic challenges in 2022 so that national economic growth has grown impressively to reach 5.31% (CtC), which is the highest growth in the last ten years. Facing 2023, the Government remains optimistic that the Indonesian economy can continue to grow positively based on various domestic and external indicators that show impressive resilience. Both are important assets for Indonesia in facing the global economy going forward.

Several real sector indicators released in January 2023 showed the Consumer Confidence Index moving at an optimistic level of 123.0 and the Manufacturing PMI at an expansive level of 51.3. Meanwhile, external indicators also show the resilience of the Indonesian economy as seen from the increase in Foreign Exchange Reserves as of January 2023, which amounted to 139.4 billion USD.

"To increase foreign exchange reserves, the foreign exchange must be parked in Indonesia, so the export proceeds are required to be detained in Indonesia for 3 months. So what was detained was around 30% and from the count. From there, we can reserve 40 to 50 billion (USD) in one year. So, if we do that, 40 to 50 billion (USD) 1 year, this is an extraordinary thing," explained the Coordinating Minister for the Economy Airlangga Hartarto in the B-Universe Economic Outlook 2023 in Jakarta, Tuesday (14/02).

The Coordinating Minister for Airlangga further explained that the Government is preparing a stimulus with the Minister of Finance, Bank Indonesia, and the Financial Services Authority.

"Therefore in the P2SK (Law), it has been included in charge of regulating the flow of foreign exchange. Not just recorded. So, this is another breakthrough. The transformation is being carried out by the Government and this is anticipatory in nature," said the Coordinating Minister for Airlangga.

A number of other main policies that are also being prepared by the Government for the future economy are related to the right mix of fiscal and monetary policies, the Law on the Development and Strengthening of the Financial Sector, and the Job Creation Perpu. The government is also committed to carrying out economic transformation to achieve the vision of Indonesia 2045 through increasing industrial downstreaming, increasing human resource capacity, one of which is through the Pre-Employment Card Program which became a game changer during the Covid-19 pandemic and in practice made Indonesia a global concern.

In addition, the government is also committed to implementing a green economy which at the last G20 Summit has been supported by various investments and international agreements. The government is also developing downstream industries in order to increase the selling value of commodities. Exports of raw materials will continue to be reduced and downstream industries based on natural resources in the country will continue to be increased.

Concluding his explanation, the Coordinating Minister for Airlangga also said that the Government is trying to strengthen national economic growth through the relocation of the Archipelago Capital City (IKN) to create development and economic equity throughout Indonesia.

"We know that one of the levers of economic growth is infrastructure, and infrastructure in the form of large projects is expected to attract the national economy. So one of them is from IKN," concluded the Coordinating Minister for Airlangga.

Also attending the occasion were Executive Chairman B Universe Enggartiasto Lukita, and Chief Executive Officer (CEO) Rio Abdurrahman and other invitees. (ltg/tam)

News cited from

https://www.ekon.go.id/publikasi/detail/4919/optimis-menghadapi-perekonomian-tahun-2023-pemerintah-terus-lakukan-transformasi-ekonomi