"Economic uncertainties continue to haunt almost all regions including Asian countries such as China, India and Indonesia. Therefore. all countries including the developing ones, must continue to strive to get out of these uncertainties," economic Nouriel Roubini, a professor at the Stern School of Business of New York University, said in his lecture at the National Investment Coordinating Board (BKPM) Building here on Monday.
The economic lecture titled "Global Economic Challenges and Its Impact on Indonesia" was attended by Trade Minister Gita Wirjawan and a number of national economists as panelists such as Rizal Ramli, Emil Salim, Purbaya Yudhi Sadewa, Aviliani, Mirza Adityaswara and Fauzi Ichsan.
Roubini said until now the impact of the current global crisis had not yet affected Indonesia directly due to its strong domestic market.
Indonesia`s debt-to-GDP ratio in 2011 was still healthy at 25.2 percent but lower than in 2010 and 2009 when it was 27.4 percent and 28.6 percent respectively.
Indonesia`s economic growth was also still positive and even tending to rise. The IMF had predicted Indonesia`s economy may grow 6.2 percent in 2011, up from 6.1 percent in 2010 and 4.6 percent in 2009.
He said the impact of the economic uncertainties as a result of the crises in Europe and the US had started to be felt in the share market, state-owned corporate and private sectors but it was not yet serious.
However, he suggested that anticipatarory measures be taken in case no immediate solutions to the crisis were found so as to minimize the effects on investment, company capitals and economic growth.
"On the other hand positive decisions for European and US markets would have the potential of mobilizing developing countries` economies, manufacturing sector, trade, information technology services and boost direct foreign investment," he said.
Roubini acknowledged that Indonesia`s economy was good enough to weather a crisis, supported by domestic consumption and widening export markets.
"Indonesia and India are two countries that have managed to do relatively well because 60 to 70 percent of their economies are supported by public consumption. This may be used to measure a country`s economic resilience," he said.
In response to Roubino`s views, Minister Gita Wirjawan said that although Indonesia`s domestic consumption was high, a policy was needed to maintain the rate of export growth.
"Under current conditions we must strengthen the domestic market and safeguard export markets so that they will not be eroded," he said.
He confirmed that the current crisis has not yet affected the country`s export markets.(*)
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Editor: Jafar M Sidik
Copyright © ANTARA 2011
