Indonesia on the Path to Golden Economy 2045 Amid Global Challenges

Jakarta, INTI - Amid the ongoing global challenges, Indonesia's economic fundamentals remain robust. In the second quarter of 2024, Indonesia's economy grew strongly at 5.05%, outpacing major countries like China (4.70%), Singapore (2.9%), South Korea (2.30%), and Mexico (2.24%). This growth was also supported by controlled inflation, which was recorded at 2.13% in July 2024, staying within the government's target range.

With a strong foundation, Indonesia aims to become a sovereign, advanced, and prosperous nation by its 100th anniversary of independence, known as Indonesia Emas 2045. To achieve this vision, increasing sustainable infrastructure investment is crucial for a resilient future.

"Our global competitiveness index has also increased by 7 points in a year. Rating agencies have given positive feedback on our infrastructure, business efficiency, government efficiency, and economic performance. So, I think our reforms have been implemented and appreciated by stakeholders," said Coordinating Minister for Economic Affairs Airlangga Hartarto at the Foreign Policy Community Indonesia (FPCI) CEO Forum 2024, Tuesday (6/08).

Strategies Toward Indonesia Emas 2045

Minister Airlangga outlined the government's policy strategy to achieve the vision of Indonesia Emas 2045 through three economic engines to accelerate growth: revitalizing conventional economic engines to increase capacity and productivity, developing new economic engines, including digital technology, green economy initiatives, and modern biotechnology, and enhancing focus on resilience and social empowerment to ensure socio-economic sustainability.

Indonesia's participation in various international cooperation forums such as ASEAN, G20, RCEP, IPEF, EURASIA, CP-TPP, and its relationship with the EU, including accession to become an OECD member, will help boost domestic investment, enhance global confidence in Indonesia, and open wider export markets.

The government is also promoting industrial downstreaming policies to increase the national economic value and support the technology and manufacturing sectors, including electric vehicle (EV) components.

Developing the Semiconductor Industry Ecosystem

Moreover, Indonesia is accelerating the development of the semiconductor industry ecosystem as a new economic engine. This effort includes integrating key assets such as minerals, skilled technicians, and renewable energy into the global chip industry, including the development of Batam and Bintan as special economic zones for semiconductors. This development is supported by targeted policies, fiscal incentives, clean energy, and mineral processing.

"We have several startups. Some young entrepreneurs are running engineering or consulting businesses in Bandung. They also serve as vendors for NVIDIA, TSMC, and receive funding from New York. So, I think we need to multiply this talent for the semiconductor industry," concluded Minister Airlangga.

The event also featured the Founder and Chairman of FPCI, Assistant Deputy for Economic Cooperation of America and the Pacific at the Coordinating Ministry for Economic Affairs, and several CEOs from domestic and international companies.

In closing, don't miss the opportunity to attend the Indonesia Technology and Innovation 2024 (INTI 2024) exhibition at JI-EXPO on August 12-14, 2024. INTI is the largest technology and innovation exhibition in Indonesia. For more information, visit https://inti.asia/.