Global economic conditions are projected to be unstable next year. However, the Indonesian government is committed to resisting the threat of declining economic growth as has happened in several countries. As reported by Antara, President Joko Widodo at Bank Indonesia Annual meeting in Jakarta on Thursday (11/29) said that Indonesia must be grateful because the economy could still grow above five percent.
President Joko Widodo also stated that for the G20 member countries, Indonesia's economic growth is only surpassed by China and India. Indonesia is in the third position, one level above the United States. President Joko Widodo is optimistic that next year, Indonesia's economy will be able to resist. On this occasion, he praised the coordination between three economic forces: Minister of Finance, Governor of Bank Indonesia, and Chair of the Financial Services Authority (OJK). According to him, without good communication, macroeconomic policies would not support each other.
President Joko Widodo further asserted that the government would focus on private sector growth. Because the role of the State Budget (APBN) in economic growth only reaches around 14 to 17 percent. He ordered that projects across Indonesia have to be carried out first by the private sector.
An optimistic view was also expressed by Governor of Bank Indonesia, Perry Warjiyo who emphasized that the prospects for the Indonesian economy in 2020 are maintained with growth momentum to continue According to him, Indonesia has prepared a number of strategies to deal with the global economic crisis that will still occur in 2020. Indonesia's economic growth in 2020 is expected to increase from 2019 in the range of 5.1 to 5.5 percent.
This optimism arises because the 2020 inflation is projected to remain under control according to the target of 3.0 percent plus minus one percent. In addition, the current account deficit in 2020 is in the range of 2.5 to 3 percent of Gross Domestic Product (GDP). The capital and financial transaction surplus is projected to remain large to support external stability.
The Rupiah exchange rate in 2020 is also expected to move stable. The growth of banking third party funds in 2020 is predicted to reach 8 to 10 percent. Governor Perry also pointed out that the driving force of 2020 growth remains in consumption and investment. Bank Indonesia is also committed to continuing to issue accommodative monetary policies.