Bisnis.com, JAKARTA — Finance Minister Sri Indrawati said there are still a number of challenges that have the potential to hamper Indonesia’s future economic growth.
The Central Statistics Agency (BPS) reported that Indonesia’s economic growth grew 5.44 percent year-on-year (yoy) in the second quarter of 2022, beating the result of the previous quarter.
Sri Mulyani said this success shows that Indonesia is in a good position where the supply and demand sides are sustained.
In addition, the inflation rate is relatively stable, in line with the government’s additional subsidies, both through energy subsidies and social assistance.
“In other countries, maybe inflation is already very high, while the recovery on the supply side isn’t great, so growth isn’t very high,” he said at the PEN book launch on Friday (05/08/2022).
However, Sri Mulyani recalled that there are still a number of challenges ahead, particularly from the outside.
First, namely the aggressive moves by the central banks of developed countries, particularly the United States (US). If the Fed aggressively raises interest rates again, there are fears that the country’s economy will weaken.
Fed policies affect the global economy, including developing countries. A sharp increase in the Fed interest rate will increase the US Treasury interest rate, restricting the inflow of foreign capital and affecting exchange rate stability in developing countries.
challenge second, namely geopolitical tensions. “Geopolitics is harder to predict. If we talked about Russia and Ukraine yesterday, let’s hope it doesn’t develop further. [ketegangan geopolitik],” he explained.
third, namely climate change. Sri Mulyani said that climate change is now starting to threaten many countries, some of the emerging phenomena are extreme temperature increases in India, heat waves in Europe and droughts in Africa.
Aside from that, fourthAccording to Sri Mulyani, the challenge that needs to be watched closely is digital technology. The reason is that he believes this sector will play a very important role now and in the future.
“For example, with the advent of digital currencies, cryptocurrencies, as an open country, we need to be aware of the possible dynamics that can occur at any time in this country or globally,” he said.
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