INDEF Economist: Indonesia’s Economy is Stable, It is Important to Focus on Competitiveness and Investment

Jakarta – Tauhid Ahmad, an economic expert from INDEF (Institute for Development of Economics and Finance), conveyed his analysis of Indonesia’s current economic situation. He assessed that the national economy was in a safe and stable position with an overall growth rate of around 5%.

“Indonesia is grateful because in the previous first quarter the economy was supported by an increase in government expenditure and investment,” said Tauhid, during an interview on a radio station in Jakarta.

According to him, these two indicators contribute to national economic resilience. The challenges that will arise in the next quarter are related to people’s purchasing power.

“To keep the economy safe, there are several things that can be done, one of which is through the investment sector,” he said.

This investment, continued Tauhid, entered the real sector, especially in the labor sector. This needs to be done, in order to maintain the strategic industry which has the largest workforce, as well as the MSME sector

Tauhid explained that the increase in Indonesia’s competitive position to 27th in the world based on the 2024 World Competitiveness Ranking (WCR) report shows that there have been significant changes made by the government, from year to year.

“This needs to be appreciated together because the government’s efforts have shown improvements in various economic sectors,” said Tauhid.

With a situation like this, explained Tauhid, there has also been an increase in the economic performance sector, especially the domestic market, prices and government effectiveness. This is because of the existence of the Job Creation Law which has apparently created a more competitive labor market.

The government is quite capable of meeting domestic market conditions, with the various policies it has issued. However, he added, there is also a need for contributions from the private sector to work together in developing the national economy, so that it can be maintained in a safe and sustainable position. []