The government always prepares a scenario. However, now, we are still waiting for developments (in the Iran-Israel conflictJakarta (ANTARA) - Coordinating Minister for Economic Affairs, Airlangga Hartarto, has emphasized that the government regularly prepares scenarios to reduce the impact of global geopolitical turmoil on Indonesia’s economy, especially the real sector.
“The government always prepares a scenario. However, now, we are still waiting for developments (in the Iran-Israel conflict)," he informed at a press conference in Jakarta on Thursday.
He noted that the potential for escalation of the Iran-Israel conflict is not yet significantly visible. The government is also monitoring the developments between the two countries for potential geopolitical ramifications.
Hartarto noted that the statements issued by world leaders have so far tended to be the same, namely wanting to avoid escalation.
He further said that neighboring countries around Israel, such as Jordan, Egypt, and Saudi Arabia, have also emphasized the importance of exercising restraint or de-escalation.
“The UN Secretary-General has also asked all parties to exercise restraint and is seeking to control the escalation in the situation. Earlier, Iran also stated that it is still awaiting a statement from the UN,” he remarked.
The minister noted that investors have a good level of confidence in the resilience of Indonesia’s economy. The national economy is also estimated to continue growing at around 5 percent this year.
“Indonesia is far above the global economic development (which is predicted to grow 3.2 percent in 2024). The global economy is projected to flatten while Indonesia’s (economic growth) is projected to be at 5.1 percent in 2025,” he said.
According to him, Indonesia’s economic resilience is evident from surveys by several rating agencies, including Moody’s, which released its report on April 16, 2024.
In its report, Moody’s maintained Indonesia's sovereign credit rating (SCR) at Baa2, one level above investment grade, with a stable outlook.
It assessed that Indonesia’s economic resilience is maintained with high and stable economic growth and several strong policy instruments amid global economic uncertainties.
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Translator: Rizka Khaerunnisa, Raka Adji
Editor: Azis Kurmala
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