INDUSTRY.co.id – JAKARTA – As the global economic outlook remains clouded by persistent inflation and elevated interest rates, Indonesia's government is working to sustain the country's economic stability momentum and strengthen investor confidence through targeted policy measures and proactive engagement with the international financial community.
Coordinating Minister for Economic Affairs Airlangga Hartarto presented Indonesia's economic outlook at the H1 Global Research Briefing – 2023 Global and Indonesia Outlook, highlighting the resilience of the national economy despite external headwinds and outlining the government's strategy to maintain growth.
"The global situation presents serious downside risks, but Indonesia enters 2023 from a position of strength. Our macroeconomic fundamentals are solid, and we have the policy tools and fiscal space to respond effectively to external shocks," Airlangga said at the event.
A key component of the government's economic stability strategy is the PC-PEN (National Economic Recovery Program), which has been instrumental in sustaining domestic demand and supporting vulnerable households and businesses through the post-pandemic recovery phase. The program has been refined to target sectors most at risk from global economic volatility.
Indonesia's government also signaled its commitment to maintaining a conducive investment climate by ensuring policy predictability and continuing to improve the ease of doing business. Strong commodity exports, particularly in coal, palm oil, and nickel, provided a fiscal buffer that gives policymakers room to maneuver.
Analysts attending the briefing noted that Indonesia's relatively low public debt-to-GDP ratio and stable current account position compared favorably with many emerging market peers. The government's focus on downstream industrial development, particularly in electric vehicle supply chains, was highlighted as a key medium-term growth driver.
