Currently the world is faced with geopolitical tensions in Ukraine which also has a significant impact on the domestic economic recovery agenda. Therefore, in order to continue to strengthen the economy, the relationship between partners needs to be strengthened. "The increase in energy and food prices and scarcity requires every country to prepare and implement better policies in order to effectively address the existing challenges," said Coordinating Minister for the Economy Airlangga Hartarto virtually, Sunday (17/4). In terms of handling the Covid-19 pandemic, Indonesia currently has a low hospitalization rate and more than 140 million people have been fully vaccinated. Meanwhile, the government also continues to encourage the provision of booster vaccinations for the community.
Then from the demand side, economic recovery, economic growth in 2021 managed to grow positively by 3.69% on an annual basis. Furthermore, Indonesia's economic growth is expected to increase in the range of 5.0% to 5.5% this year. On the demand side, economic growth was driven by positive growth in consumption, manufacturing activity, investment and exports. Likewise, from the supply side, almost all sectors grew positively in response to increased demand. In the trade sector, in 2021 Indonesia succeeded in obtaining a trade surplus of USD 35.3 billion, mainly from the super cycle of leading commodities. Foreign direct investment (FDI) was also recorded to reach USD 31.6 billion, of which around USD 2.4 billion came from member countries of the European Union.
Indonesia has also made progress on structural reforms by passing the Job Creation Law. The policy improves trade and investment performance despite mobility constraints as the law encourages more efficiency and regulatory clarity,” he added. In addition to the pandemic and geopolitical tensions, another threat looming and endangering the planet Earth is climate change. Indonesia is strongly committed to reducing greenhouse gas (GHG) emissions by 29% through its own efforts or 41% with international support by 2030. The target is to achieve Net Zero Emissions by 2060 or earlier. Therefore, it is important for all countries to follow up on last year's Glasgow Climate Pact towards COP27 in Sharm El Sheikh, Egypt this year. “Indonesia seeks to build stronger trade and investment based on sustainable principles through green and blue economic models and with private sector engagement and partnerships. This partnership model is also applied in the construction of infrastructure projects," said Airlangga.
