Indonesia’s economic projection among the highest in ASEAN and G20 countries

Projection of Indonesia’s economic growth ranks third among the ASEAN and G20 countries despite current global turmoil, stated Sri Mulyani, Finance Minister of the Republic of Indonesia.

According to the report of Indonesian news agency ANTARA, Sri Mulyani said that one of the indicators reflecting positive trend in Indonesia’s economy is the expansive manufacturing sector activity, with a Manufacturing Purchasing Managers’ Index (PMI) of 51.5 in October 2023.

Thus, Indonesia is included in the 30.4% of G20 and ASEAN-6 countries that recorded expansive Manufacturing PMI, apart from the Philippines, Singapore, India, the US, Mexico and Russia.

Sri Mulyani, Finance Minister of the Republic of Indonesia. (Source: Cabinet Secretary of the Republic of Indonesia)

“Indonesia’s economy is still estimated to grow 5%. This is one of the highest as compared to other ASEAN and G20 countries,” remarked Sri Mulyani at a virtual press conference on November 24.

According to projection issued by various international institutions in 2023, Indonesia ranks third, with the best economic growth prospects in the ASEAN and G20 countries after India, at 6.3%, and the Philippines, at 5.3%, said Sri Mulyani.

This projection is far above the global economic growth estimates of 2.1% from the World Bank and 3% from the International Monetary Fund (IMF), she added.

However, the Finance Minister listed some obstacles to the country’s economic growth, such as high inflation, slowdown of the Chinese economy and commodity price volatility, reports ANTARA.

Other risks also include geo-economic fragmentation, crisis due to climate change, limited global policy space and increased risk of debt difficulties.

“Even though global inflation has started to decline, it is still relatively high as compared to historical levels in the last decade,” explained the Finance Minister.