Coordinating Minister Airlangga explains Indonesia's economic success to world leaders at Nikkei Forum 2024

COORDINATING MINISTRY OF ECONOMIC AFFAIRS

REPUBLIC OF INDONESIA

PRESS CONFERENCE

HM.4.6/334/SET.M.ECON.3/05/2024

Coordinating Minister Airlangga explains Indonesia's economic success to world leaders at Nikkei Forum 2024

Tokyo, May 24, 2024

Continuing the Nikkei Forum 2024 series of events in Tokyo, Coordinating Minister Airlangga Hartarto, who attended on behalf of Indonesian President Joko Widodo, spoke to world leaders, as well as economic and academic experts from the Asia region -Peaceful. At the event titled “The Future of Asia”, Coordinating Minister Airlangga explained how Indonesia's efforts have maintained economic resilience in the face of global uncertainty and presented various investment opportunities in Indonesia.

“During the unprecedented Covid-19 pandemic, the Indonesian economy was able to become one of the most successful in the world. “Since the second quarter of 2021, the Indonesian economy has continued to post an average year-on-year growth rate of around 5 percent,” said Coordinating Minister Airlangga.

Indonesia's economic growth in the first quarter of 2024 was also able to record a figure of 5.11% (yoy) and was followed by an inflation rate in April 2024 of 3.00% (yoy) , still maintained within the target range of 2.5 ± 1%. . In addition, Indonesia's GDP per capita has also trended upward since the pandemic, with a target per capita income of USD 5,500 this year.

“Indonesia encourages stable economic growth through political and social stability. “Of course, this is a very good condition for investors as well as businessmen and economic players,” said Coordinating Minister Airlangga.

The Indonesian government is also currently undergoing a gradual transition to ensure the sustainability of the various programs. Economic transformation, which is the main agenda of President Joko Widodo, will continue to be implemented to realize the Golden Indonesia Vision 2045. The direction of the economic transformation policy is to avoid the middle income trap during the Next 20 years through 2 scenarios, namely transformative with economic growth of 6% per year to escape the middle income trap in 2041 and optimistic about economic growth of 7% per year to escape the middle income trap in 2038 .

In addition to the economic transformation policy, the government will also continue to carry out structural reforms to maintain the investment climate by facilitating business procedures, including the full implementation of the Job Creation Law.

“To support structural reform, the Indonesian government has initiated a process to become a member of the OECD. “By adopting OECD standards, we hope to be able to support the achievement of the GDP per capita target of USD 30,300 in 2045,” said Coordinating Minister Airlangga.

Furthermore, the Indonesian government also continues to combine conventional growth drivers such as infrastructure development, food security and international cooperation by encouraging new growth drivers enhanced by massive industrialization, digitalization and energy transition. This combination will be supported by strengthening resilience and economic empowerment.

International cooperation is also one of the Indonesian government's priorities, including membership of the OECD. The Indonesian government also hopes to become a full member of the OECD within 3 years. Policy reform by referring to OECD standards will not only increase policy predictability and transparency, but Indonesia will also help determine global economic standards so that it becomes a benchmark for sustainable investment and quality.

On this occasion, Coordinating Minister Airlangga also discussed Indonesia's active involvement 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 encourage increased investment.

At the end of the presentation, Coordinating Minister Airlangga revealed the downstream policy to create added value. Indonesia has played an important role when it comes to critical minerals for electric vehicle batteries for the automotive industry and renewable energy. Indonesian nickel, copper, bauxite and tin are part of the renewable energy industry, the space industry and even the defense industry.

“Regarding the energy transition, Indonesia, as one of the initiators of the Asian Zero Emission Community (AZEC), highlights the importance of inclusive financing for decarbonization cooperation and transfer low-carbon technologies. “There are currently at least 12 real cooperation projects within the framework of AZEC and 3 of them are already in the implementation phase,” concluded Coordinating Minister Airlangga.

***

Spokesperson for the Coordinating Ministry of Economic Affairs
Chief, Office of Communications, Information Services and Courts
Coordinating Ministry of Economic Affairs
Haryo Limanseto

Website: www.ekon.go.id
Twitter, Instagram, Facebook, threads, TikTok and YouTube: @Per EkonomiRI
Email: [email protected]
LinkedIn: Coordinating Ministry of Economic Affairs of the Republic of Indonesia