Growth remains positive amid global economic challenges: Minister

Growth remains positive amid global economic challenges: Minister

Minister of Finance Sri Mulyani at the Habibie Award for 2018 in Jakarta on Tuesday (Nov 11/2018). (ANTARA / Calvin Basuki)

Jakarta (ANTARA News) - Finance Minister Sri Mulyani Indrawati said that Indonesia`s economic growth remained positive amid hard global economic conditions.

"Today, global economy is facing challenges as a result of US monetary normalization policy and trade war that brings tensions," Indrawati noted here on Tuesday.

Therefore, she noted that the government will continue to monitor the dynamic global conditions. The minister made the statement during the granting of the 20th Habibie Award 2018 in Jakarta on Tuesday.

She explained that the global economy today is facing challenges as a result of the US monetary normalization policy and the trade war that leads to tensions in various parts of the world.

Yet, the minister explained that the Indonesian economy would experience positive growth amid the global economic conditions, which are full of challenges.

She explained that the Indonesian economy remains to be in consistent growth of over 5.0 percent up to the third quarter of 2018. The inflation rate is also recorded at about 3.5 percent.

The momentum of increased economic growth is expected to increase employment opportunities and reduce unemployment.

The open unemployment rate, according to regions in August 2018, was recorded at 5.34 percent, down from 5.50 percent in August 2017. While the creation of employment opportunities in 2018 is 2.99 million.

With the momentum of inclusive growth, Indrawati hoped that poverty and inequality can also decline.

"The rate of poverty is 9.82 percent (as of March 2018), which is below 10 percent for the first time. The gini coefficient also decreased from 0.41 to 0.38," she added.

The finance minister earlier expressed hope that global economic players should adopt a rational outlook in perceiving Indonesia as not being a vulnerable nation since the current economic foundation is still strong.

"Of course, with the existing political developments, we hope for rationalization from global economic actors. They will view Indonesia differently," she stressed at the headquarters of the Directorate General of Taxes in Jakarta on Friday (Nov 9).

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. She 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 remarked.

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, she will remain wary, considering the global political atmosphere that still remains volatile.

Reporting by Calvin Basuki

 

(T.SYS/A/KR-BSR/C/A014) 13-11-2018 22:59:28

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