IMF Senior Economist: Indonesia’s Most Resilient Economy

TEMPO.CO, Jakarta – International Monetary Fund (IMF) senior economist, Yan Carrière-Swallow, assesses that Indonesia is not a vulnerable country in facing the dangers of recession and inflation which is predicted to increase next year. According to him, although inflation is above the target, it is not too high in the context of the global economy. “Indonesia is one of the most resilient economies, in terms of having a healthy buffer level,” he told Tempo last Tuesday, November 1.

Nonetheless, the IMF predicts Indonesia’s economic growth in 2023 will reach 5 percent, down 0.3 percent from this year. According to Yan Carrière-Swallow, this figure is still higher than other countries.

“Most of it is due to global uncertainty due to war, inflation and the commodity crisis which has affected investment,” said Yan.

Yan Carrière-Swallow assesses that the Indonesian government’s economic growth target, which reaches 5.3 percent, is not impossible even though it is difficult. To make this happen, Indonesia needs to invest more in certain areas, such as education, healthcare, and infrastructure. This will encourage the economy to be more productive and sustainable in the long run.

In a long interview with Tempo, Yan explained the global economic situation and its impact on Indonesia. The two of them also responded to the issue of Indonesia’s foreign debt, the weakening of the rupiah against the US dollar, the investment target of IDR 1,900 trillion next year, to the construction of the Archipelago Capital City.

Read more in this week’s Tempo Magazine: IMF: Indonesia’s Most Resilient Economy

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