"Our global competitiveness index increased by seven points in a year. Rating institutions give great feedback about our infrastructure, efficiency of business and government, and economic performance," he informed at the Foreign Policy Community Indonesia (FPCI) CEO Forum.
He then explained the government's strategy for achieving the Golden Indonesia 2045 vision, which involves three economic engines to accelerate growth.
First, revitalizing conventional economic engines to increase their capacity and productivity, he said.
Second, developing new economic engines like digital technology, green economy, and modern biotechnology; and third, focusing more on social resilience and empowerment to ensure socioeconomic sustainability.
According to Hartarto, Indonesia's role in various international cooperation forums, such as the ASEAN, G20, and Regional Comprehensive Economic Partnership (RCEP), along with its relationship with the European Union, and its accession to the Organisation for Economic Co-operation and Development (OECD) has helped boost domestic investment, gain global trust, and widen the export market.
The government has continued to encourage the industry downstreaming policy to add economic value and push the technology and manufacturing sectors, such as those involved in making electric vehicle (EV) components.
Hartarto added that the government is speeding up the development of the semiconductor industry as a new economic engine as well as the integration of essential assets, such as minerals, skilled technicians, and renewable energy, into the global chip industry.
Amid the ongoing global challenges, Indonesia's economic fundamentals are still sound, he said.
In the second quarter of 2024, Indonesia's economy grew strongly by 5.05 percent, outperforming China (4.70 percent), Singapore (2.9 percent), South Korea (2.30 percent), and Mexico (2.24 percent).
"The growth was supported by controlled inflation, which was 2.13 percent in July 2024, maintained within the target range," he said.
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Translator: Bayu S, Kenzu
Editor: Rahmad Nasution
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