Key points
- The Indonesian Ministry of Finance expects a shortfall in GDP for the year 2023.
- The GDP growth rate for this year is expected to be 5.6%.
- The government will continue supporting economic growth.
Given the world economic crisis, the Indonesian Ministry of Finance expects a shortfall of 2.81 to 2.95 of Gross Domestic Product (GDP). The Indonesian Minister of Finance, Sri Mulyani Indrawati, stated the above drop during an interview last Thursday (Apr 14).
The government expects to continue its support to the growth in the economy, irrespective of the shortfall. Presently, Indonesia, like the rest of Southeast Asia, is facing heavy inflation. Also, even the most basic commodities almost doubled in price in the last 03 months in some of these countries.
Indonesia has been trying to provide its people with concessions for years now. The government even compensated oil distributors to provide gas at affordable prices to the people. It was stated earlier this year that the Indonesian government can no longer minimize the inflation.
Since the Ukraine-Russia crisis affects the world on a global scale, Indonesia too is seeing some drawbacks. As a result, one of the major issues weighing down the people of Indonesia is the scarcity of cooking oil. Indonesia, the world’s largest palm oil provider, facing a shortage of cooking oil is unsettling. To mediate this situation, the government limited the amount of palm oil exported from the country.
The Indonesian government plans to take more effective decisions in the upcoming year. Making sure the country’s shortfall remains under 3% is considered a top priority. Southeast Asia’s largest economy, Indonesia, is definitely seeing darker days. But the government is determined to thaw the inflation and improve the livelihood of the people.
Reference,
https://www.channelnewsasia.com/business
