Amid ongoing global economic challenges, international institutions project global economic growth in 2024 to be around 3% year-on-year (yoy). Despite this, Indonesia's economic fundamentals remain stable, demonstrating resilience to global shocks. In the first quarter of 2024, Indonesia's economic growth was recorded at 5.11% yoy, with April 2024 inflation maintained within the target range of 2.5±1%, standing at 3.00% yoy. "Indonesia ranks among the top five G20 countries with economic growth around 5% and is also in the top five for lowest inflation rates. Therefore, we are confident in our ability to maintain this stability," stated Coordinating Minister for Economic Affairs Airlangga Hartarto during a courtesy call with Nikkei Inc. executives at the Imperial Hotel Main Building in Tokyo, Japan, as part of the Nikkei Forum 29th Future Asia on 24 May.
Minister Airlangga also highlighted Indonesia's digital economy, currently valued at USD 90 billion and expected to reach USD 130 billion by 2025. This aligns with the potential growth of the digital economy in the ASEAN region, home to approximately 600 million people. With the Digital Economy Framework Agreement (DEFA) implementation, the ASEAN digital economy, initially estimated to reach USD 1 trillion by 2030, could potentially double to USD 2 trillion. Addressing issues like cybersecurity and digital infrastructure, Airlangga noted, "Cybersecurity will always be a concern in the digital economy. Given Indonesia's archipelagic nature, relying solely on fiber optic networks is insufficient for providing internet connectivity across the entire country." Regarding global tech CEOs' interest in Indonesia, Airlangga emphasized the strategic positioning of Indonesia's digital economy as the next major growth engine, noting that Indonesia is home to 10 unicorns and 2 decacorns. During the meeting, Minister Airlangga and Mr. Daisuke discussed topics including downstream industries, the upcoming visit of the OECD Secretary-General to Jakarta, Indonesia's automotive market share, and the significance of OECD membership for Indonesia. "Joining the OECD will help Indonesia escape the middle-income trap and initiate a second wave of economic reforms by aligning with best practices from other countries, thereby attracting more investments," concluded Airlangga.
