The Economic Growth of Indonesia Ranks Among the Top 5 in the World

Coordinating Minister for the Economy Airlangga Hartarto. PHOTO: Coordinating Ministry for the Economy

In the third quarter of 2023, Indonesia’s economic trajectory demonstrated a noteworthy ascent, registering a robust growth of 4.94% in a year-on-year comparison. The significance of this development is underscored by its inclusion in the esteemed top 5 economies globally, a revelation conveyed by Airlangga Hartarto, the Coordinating Minister for Economic Affairs.

Airlangga accentuated the notable resilience and strength inherent in Indonesia’s economic fundamentals, particularly when juxtaposed against various nations, surpassing even neighboring countries like Malaysia and China.

During the Indonesia Economic Outlook Seminar 2024 x Permata Bank on Tuesday (21/11/2023), Airlangga conveyed his optimism, asserting, “Indonesia is among the top 5 economies in the world, and economic resilience remains strong.” Beyond the macroeconomic scope, Indonesia’s adept management is further evident in its controlled inflationary landscape, aligned with governmental targets.

Airlangga further expounded on Indonesia’s commendable fiscal health, highlighting a government debt position comfortably below the 40% threshold. In a comparative perspective, this stands in stark contrast to nations like Japan and the United States (US), where debt ratios exceed 100% of their respective Gross Domestic Products (GDPs).

The Minister emphasized the exceptional capability of Indonesia in orchestrating a harmonious blend of economic growth, inflation control, and socio-economic inclusivity. This proficiency manifests in tangible outcomes, including a reduction in poverty rates and an upswing in employment figures.

Analyzing global economic landscapes within the G20 consortium, Russia’s third-quarter growth in 2023 soared to 5.5%, albeit surpassing Indonesia. Simultaneously, the growth in China, Mexico, and the US lagged, with figures of 4.9%, 3.3%, and 2.9%, respectively.

Peering into the future, particularly the forthcoming transitional year, Airlangga’s sanguine outlook foresees Indonesia’s economic trajectory maintaining its robust upward trajectory.

“The government is confident that next year the economy will remain robust, with various institutions predicting our growth to be around 5.2%. Considering various risks, we need to anticipate global uncertainties in the future,” he concluded.