Jakarta (ANTARA) - Coordinating Minister for Economic Affairs Airlangga Hartarto has said that Indonesia has managed to better handle domestic inflation compared to other countries.

"The world's challenges do not stop here: we are entering the perfect storm named 5C. The 5C is a COVID-19 pandemic that has not yet been completed. Next is the conflict in Ukraine and Russia that has an impact on Indonesia,” he observed at the University of Pelita Harapan (UPH) Festival here on Friday.

The next challenge would be climate change, then commodities or rising commodity and energy prices, as well as the rising cost of living, he said. In the United States, inflation has reached 8.5 percent, while inflation in European countries has crossed 9 percent. Meanwhile, inflation in Singapore has reached 9 percent.

"Well, in Indonesia, inflation until June 2022 was still 4.9 percent. Indonesia has succeeded in dealing with inflation, supported by the government's budget in the state budget," he explained.

He said that for 2022, the budget for fuel subsidies has been set at Rp502 trillion, and the budget for handling COVID-19 at Rp600 trillion to Rp900 trillion per year.

In the next 10 years, Indonesia will reap a demographic bonus, Minister Hartarto added. Indonesia will enjoy the demographic bonus until 2035.

"Our history records that Indonesia's per capita income was US$2 thousand, while now it is US$4 thousand. We must move out of the middle-class category in the next few years by increasing the per capita income. This is a challenge for you, the students,” he said.

According to Hartarto, one of the efforts that can be taken to change the situation is digital transformation. And students, he said, have an important role in digital transformation.

In the meantime, Minister of Communication and Informatics Johnny G. Plate said Indonesia still needs to work hard to realize a transformation. Students need to take the lead in Indonesia's recovery as well as digital leadership.

"We want to turn Indonesia into a digital hub for Southeast Asia and Asia. For that, I advise students to always focus on working with a clear mind and based on the values of compassion. I am confident and optimistic that the unity of all components of the nation can lead Indonesia, and even the world, to recover faster, to rise stronger," the minister remarked.

Related news: Regions can use Rp14-trillion contingency fund to fight inflation
Related news: BI sees core inflation at 4.15% due to fuel prices
Related news: Potential for 4.8% inflation in 2022: Minister Hartarto

Translator: Katriana
Editor: Sri Haryati
Copyright © ANTARA 2022