"It is acknowledged that with the current crisis, the world economy is undergoing a downward trend which is different from the previous assumption. This reality can just take place until the end of the year," the deputy minister on the sidelines of the Third Senior Officials` Meeting (SOM) of the Asia Pacific Economic Cooperation (APEC) here on Thursday.
However, each country feels different impact and has different position with regard to the crisis. Yet, Indonesia`s economic condition was still considered better. In general, Indonesia`s economic growth was still relatively higher than that of other countries. After all, its fiscal condition was also still better.
The deputy minister said that the key to the stability of the economic growth of Indonesia was not merely caused by the conditions of its macro economy such as the state budget, fiscal resilience and monetary conditions but also by the improvements of certain sectors such as manufacture, logistics and flows of goods.
"This is because the government also focuses its attention on those sectors," said Mahendra.
Thus, with the effective logistics and stage budget systems, Indonesia was viewed to be able to improve its economic efficiency and economic resilience based on domestic economic development and domestic consumption.
In the meantime, Trade Minister Gita Wirjawan said last month that Indonesia now was the world`s fifteenth biggest economy with a value reaching Rp10,000 trillion in 2012.
"If the value of Indonesia`s economy is accumulated from 2012 to 20 years ahead, it will reach Rp600,000 trillion. With its domestic consumption reaching 60 percent, Indonesia`s domestic market potential is very big," the minister said.
The minister made the remarks when giving a general lecture at UNIMA University in North Sulawesi recently. He said that it was Indonesia`s challenge in the future to put its domestic products in the market which was worth Rp360 trillion.
In the current digital era, Indonesia must be built so that its domestic products will be able to compete with foreign goods.
"We should not be outplayed by South Korea which is able to produce smart phones. It should not happen that we could only consume foreign electronic products," he said.
Citing as an example on the importance of innovation, the minister said iPhone production cost was only US$10 or about Rp100,000 but its selling price in Indonesia was more than US$400 or about Rp6.8 million.
Ahead, the minister said, good leaders are those who are able to develop Indonesia`s economy, unite plural society and advance democracy so that they are able to improve the welfare of the whole people.
"In the coming 20 years, Indonesia will become the world`s seventh or sixth economy," the minister said.