China is stepping down, Indonesia and India are the strongest countries in Asia!

Rosseno Aji NugrohoCNBC Indonesia


Sunday, August 13th, 2023 3:15 p.m. IWST

Photo: Sri Mulyani at our RAPBN event in August 2023. (RI Treasury YouTube Riches shot)

Jakarta, CNBC Indonesia – Amid global uncertainty, Indonesia, along with India, emerged as the country with the strongest economic performance in the world. Shown in the Purchasing Managers Index for the manufacturing sector (as of July 2023).

Finance Minister Sri Mulyani Indrawati said that based on the manufacturing PMI during the period, most countries in the world experienced a contraction or their index numbers were below 50.

However, this is not the case in India and Indonesia. Indonesia belongs to the category of expanding countries in terms of the PMI indicator, with the indicator value at 53.3. This also applies to India, which scored 57.8.

“Indonesia and India are two countries that have strong economies and are experiencing high growth, while there are countries in ASEAN and Asia that have been quite strong but are in a situation affected by the weakening global economy,” said Sri Mulyani during the APBN press conference, quoted on Sunday (08/13/2023).

India and Indonesia were in the spotlight of foreign media. The Economist magazine said both were developing rapidly in 20 countries with other major economies or in the G-20 group.

This was published in an article titled “Asia's Greatest Race: Which Will Be Faster: India or Indonesia?” It says: “Both countries are forging new paths to get rich in a troubled world.”

That means both countries are thinking about new ways to get rich in a troubled world. Therefore, Sri Mulyani believes that the two countries share similarities.

India and Indonesia are expected to experience the fastest economic growth in 2023. As the world finds itself in an era of deglobalization, geopolitics and energy shifts, Indonesia and India are seen as successful in finding a political formula to win elections and minimize social unrest.

Both India and Indonesia share several similarities. This also includes the election of leaders who are considered charismatic in 2014, namely Narendra Modi and Joko Widodo (Jokowi).

Apart from this, there are also large areas with large populations in both countries. There are currently 1.4 billion Indians and 280 million Indonesians. In addition, Sri Mulyani added other similarities.

“India and Indonesia both have female finance ministers. Indonesian Finance Minister Sri Mulyani and Indian Finance Minister Nirmala Sitharaman.”

In terms of GDP, Sri Mulyani revealed that India's current position is $3.74 trillion compared to $1.34 trillion. It is clear that Indonesia's position is still lagging behind. Also in terms of population, India's population is 1.4 billion people. Much more than Indonesia.

However, regarding debt, Sri Mulyani emphasized that Indonesia is superior in maintaining its debt levels. India's debt has reached 83% of its GDP. Meanwhile, Indonesia recorded 39.1% of GDP.

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