"Indonesia`s economy has to be resilient enough to face the turbulence. The country`s economic fundamental and stability has to be well protected," Sri said here on Monday.
So far, Indonesia has succeeded in economic development reducing unemployment, poverty and narrowing economic gap, she said while addressing a seminar held by the Post Graduate Program of the University of Prof Dr Moestopo.
The trade war began with the policy of President Donald Trump inspired by the slogan of "American First", by slapping or raising import tariff on goods from China.
China retaliated equally hard triggering the trade war between the world`s largest economies, resulting in many developing economies reeling on weak fundamental.
Indonesia fares better than many other economies, despite shrinking value of rupiah. The country is relatively healthy financially, its banking industry remaining relatively sound.
A number of emerging economies such as Turkey and Argentine sank into the mire of economic crisis.
Sri said Indonesia has Financial System Stability Committee (KSSK), charged with preventing and handling crisis in financial system . KSSK coordinates monitoring of financial stability, handles systemic banking problem. KSSK members include the Finance Minister, Bank Indonesia Governor and Chairman of the Board of Commissioners of the Deposit Insurance Agency
"Economic stabilization is maintained through simultaneous measures against negative external factor and domestic factors. Internally, the government has built infrastructure to facilitate development of the people`s economy with sufficient supply of foods, keeping inflation low, healthy fiscal system foreign debt under control. Externally, economic stability is maintained by fostering relations with advanced and major economies such as China, Japan and Singapore," she said.
Cooperation between Bank Indonesia and Singapore`s Monetary Authority in the form of "repo and local currency swap" is valued up to US$10 billion and agreement between Bank Indonesia and Japan Central Bank in the form of amendment to Bilateral Swap Agreement (BSA) is valued up to US$22.76 billion.
The results of the national economic and social stability program are:
First, growth of the Gross Domestic Product is 5-10 percent higher than those of Turkey, Thailand, Malaysia, Singapore and below those of India, Vietnam, China, and the Philippines.
Second, per capita GDP of Indonesia grew from US$585 in 1990 to US$3,847 in 2017 higher than that of the Philippines in 2017.
Third , unemployment dropped from 11.24 million in 2005 to 5.13 million in February 2018.
Fourth, poverty dropped from 40 million in 1970 to 9.82 million in March 2018, according to CEIC and the Central Bureau of Statistics (BPS) in 2018.
Sri Adiningsih said more important than success in weathering the global economic turbulence is eliminating the source of the turbulence.
President Joko Widodo (Jokowi) in addressing the opening of the annual meetings of the International Monetary Fund and the World Bank, sharply criticized world`s economic powers which resort to trade war to win world domination.
Reporting by Indriani
Editing by Suharto
Reporter: antara
Editor: Heru Purwanto
Copyright © ANTARA 2018
