"Of course, with the existing political developments, we hope for rationalization from global economic actors. They will view Indonesia differently," Mulyani stated at the headquarters of the Directorate General of Taxes in Jakarta, Friday.
The former World Bank managing director remarked that communication with global economic actors on the condition of Indonesia`s economic foundation will encourage capital inflows.
"The more we communicate, the more we hope that economic actors, especially at the global regional level, would realize that. When they are more rational, we will get more positive capital inflows," she stated.
Mulyani explained that Indonesia`s economic growth was quite strong, at five percent, and inflation was kept low. He also believes that the State Budget posture is more healthy and credible, which is indicated by the decreasing deficit.
"Real sector spending is still progressing. If we look at the tax revenues, almost all of its contributing sectors experienced double-digit growth. Indonesia needs to continue to communicate the importance of these foundations," Mulyani stated.
The finance minister also noted that during her visit to Singapore and Australia some time ago, investors and economic players had observed Indonesia`s condition as being different from economically fragile nations.
However, Mulyani will remain wary, considering the global political atmosphere that will still remain volatile.
She stressed that in the face of such a global atmosphere, the financial system in Indonesia must have the flexibility and ability to reduce shocks.
"That is what we prepared. In the APBN (state budget), what if there is a shock, whether we are able to be flexible and absorb from the financial side. From the banking side, are they able to change when the shock occurs?" Mulyani questioned.
Reporting by Calvin Basuki
Editing by Bustanuddin
Reporter: Antara
Editor: Eliswan Azly
Copyright © ANTARA 2018
