Global economic risks cast shadow over medium-term development plan

Global economic risks cast shadow over medium-term development plan

Bappenas Deputy for Maritime Affairs and Natural Resources, Arifin Rudiyanto, said in Jakarta on Monday. ANTARA/Dewa Wiguna

Jakarta (ANTARA) - The National Development Planning Ministry/National Development Planning Agency (Bappenas) predicted that global economic risks will still cast a shadow over the implementation of the medium-term national development plan 2020-2024.

The global economic risks include the Chinese economic slowdown and geopolitical conflicts including those in the South China Sea, Bappenas Deputy for Maritime Affairs and Natural Resources, Arifin Rudiyanto, said in Jakarta on Monday.

"They will have a significant impact on us," he said.

The other global economic risks are the lingering protectionism policies, increased populism flows, and low commodity prices, he said.

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Meanwhile, the huge state debts, economic slowdown in the European Union and potential crisis in Latin America may add to the global economic risks, he said.

"They will have the potential to affect the trade balance and economic growth," he said.

Bappenas has taken into account the issues as part of efforts to anticipate the global economic risks by strengthening the demand side and transforming production activities, among others, he said,

In the midst of the global uncertainty, the government plans to strengthen domestic demand and encourage investment, particularly in the manufacturing sector, to give high added value, he said.

In addition, investment procedures will be simplified and investment will be directed to industrial estates and special economic zones.

The government will also loosen the fiscal policy as part of efforts to give a stimulus to the Indonesian economy, he said.

On the production transformation side, industrialization will be conducted to increase productivity and encourage innovations and technological transfers.

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