The World’s Attention Will Go to Indonesia

Indonesian red and white flag

Indonesia is ready to become the world’s attention. This was conveyed by the Coordinating Minister for Economic Affairs, Airlangga Hartarto. According to him, the G20 Summit in Nusa Dua, Bali on 15-16 November 2022 will turn the world’s eyes to Indonesia.

“In terms of recognition, Indonesia will become the world’s attention,” said Airlangga, citing a press release on Wednesday (11/9/2022).

He conveyed that the mandate given to Indonesia to hold the 2022 G20 Presidency had a positive impact on the national economy.

Moreover, he continued, the Indonesian economy grew impressively by 5.72 percent (year-on-year/yoy) in the third quarter of 2022 when Indonesia’s G20 took place.

In addition, the government has also succeeded in reducing the inflation rate to 5.7 percent in October 2022, so he sees Indonesia’s performance in good condition to lead the G20.

“We will also hold the chairmanship of ASEAN. So this will certainly make Indonesia even more reckoned with,” he added.

Previously reported, the Central Statistics Agency (BPS) reported that the Indonesian economy grew 5.72 percent in the third quarter of 2022 or 1.81 percent (qtq). This figure continues the solid growth trend since early 2022.

In terms of expenditure, Household Consumption became the largest contributor to GDP growth with high growth of 5.39 percent (YoY), while consumption of Non-Profit Institutions Serving Households (LNPRT) also grew significantly reaching 6.09 percent (YoY).

Gross Fixed Capital Formation (PMTB) was also able to grow by 4.96 percent (YoY) in line with the increasing production capacity of the business world.

People’s purchasing power was boosted thanks to an increase in the realization of social protection programs by 12.46 percent and an increase in the realization of fuel subsidies by 111.96 percent.

The strong national economic growth was also supported by the performance of Indonesia’s trade balance which showed a surplus of US$14.92 billion or grew by 12.58 percent.

The export sector was recorded to be able to grow double digits by 21.64 percent because it still received windfall profits due to the high prices of several leading commodities, which were dominated by coal at 13.31 percent, palm oil at 8.95 percent, and iron and steel at 6.38 percent. percent.

With the resilience of the domestic economy still being maintained until the third quarter of 2022, Airlangga estimates that Indonesia’s economic growth will remain above the 5 percent level in the fourth quarter of 2022.

Airlangga also said that positive growth in the third quarter of 2022 could be a strong enough provision to face the potential for a global recession next year.