Indonesia’s Economy Grows Above 5 Percent for 6 Consecutive Quarters, Jokowi Expresses Gratitude

Indonesia's economic growth
Indonesia's economic growth

President Joko Widodo, commonly known as Jokowi, expressed his gratitude for the sustained high economic growth of Indonesia, which has remained above 5 percent for six consecutive quarters. This statement was made following the Plenary Cabinet Meeting on the First Semester Report of the State Budget Implementation for the year 2023, held at the prestigious Merdeka Palace on Monday, July 3, 2023.

During the forum, President Jokowi highlighted the significance of the plenary cabinet meeting, stating, “In this morning’s plenary cabinet meeting, we will engage in discussions regarding the first semester report of the 2023 State Budget implementation. We have reason to be grateful that our economic growth has consistently remained relatively high, surpassing the 5 percent mark for six consecutive quarters.”

Furthermore, President Jokowi mentioned that the World Bank, as of July 2023, has once again classified Indonesia as a country with upper-middle-income growth. He acknowledged that this achievement is a testament to the rapid economic recovery process undertaken by the nation after experiencing a decline in income, plunging into the lower-middle-income category in 2020 due to the adverse effects of the Covid-19 pandemic.

While acknowledging the positive economic growth, President Jokowi cautioned that the challenges faced in the latter half of 2023 would not be easy to overcome. He emphasized the importance of vigilance in light of the unstable global environment and geopolitical tensions, which can significantly impact economic growth and international trade activities.

President Jokowi drew attention to the weakened trade activities, exemplified by declining exports, and the predictions made by various international institutions indicating a slowdown in global economic growth.

He cited figures from esteemed institutions such as the International Monetary Fund (IMF), projecting a growth rate of 2.8 percent, the World Bank with a forecast of 2.1 percent, and the Organization for Economic Cooperation and Development (OECD) estimating a growth rate of 2.6 percent.

Moreover, President Jokowi emphasized the need for careful consideration of the rising global interest rates and relatively high global inflation rates. He highlighted that any fragmentation in global trade that impedes multilateral cooperation could have adverse effects on key economic indicators such as consumption and production.

The President underlined several key points of concern, urging all stakeholders to prioritize the interests of the people and the nation. He called for a keen focus on potential crises and warned against allowing political competition to hinder government programs.

Additionally, President Jokowi appealed to ministers and relevant institutions to proactively anticipate challenges and implement necessary measures to safeguard the stability of state revenues.

He stressed the importance of ensuring that the realization of the 2023 State Budget and Regional Budget expenditures maximizes the utilization of domestic products for goods and capital spending. The President also emphasized the timely and targeted distribution of social assistance programs (bansos) to benefit the intended recipients.

In conclusion, President Jokowi’s remarks highlighted the remarkable achievements of Indonesia’s economic growth, while also underscoring the challenges that lie ahead. His call for vigilance, prudent decision-making, and effective implementation of government initiatives reflects a commitment to sustaining and enhancing the nation’s economic well-being.