DEPOK – Kajian Ilmu Ekonomi dan Pembangunan (KANOPI) FEB UI in collaboration with 13th Research Day 2019 held Indonesia Economic Outlooks 2020 with the theme of ‘ Reinforcing Indonesia’s Competitiveness in the Face of Global Uncertainty ‘ at Auditorium Soeria Atmadja, Dekanat building, Faculty of Economics and Business, Universitas Indonesia (19/11/11).Darmin Nasution, Coordinating Minister for Economic Affairs (2015-2019) as well as the speaker in the seminar, delivered the sources of global uncertainty, such as the US-China trade war and commodity price reductions. “It is coupled with the uncertainty geopolitical world, such as Brexit, the political tension between South Korea and Japan, as well as Turkey with Syria. The looser monetary policy also resulted in the economic growth and world trade slowed down,” he added.
In this global uncertainty, the Indonesian economic growth accompanied by improved quality. “Indonesia’s economic growth amid global certainty is still able to grow in 5% with improved quality. This is reflected in low and stable inflation, as well as declining levels of poverty, unemployment rate, and Gini ratio, and current account deficit offset by capital inflow, where the Rupiah exchange rate with stocks strengthened. ”
One of the efforts to strengthen Indonesia’s economic growth is with industrial development. “Industrial development with natural resources sectors, prioritizing to the 4.0 industry and other industries by addressing the root cause in industry priorities, such as the modernization of machinery in the food industry and the textile industry.”
John G. Nelmes, International Monetary Funding (IMF) Senior Resident Representative in Indonesia, also conveyed the display with the theme ‘ Indonesia: Sustaining Robust and Inclusive Growth in a Global Environment of ductility Uncertainty ‘. John gives an overview of the globally ‘ trapped ‘ economic state in its prolonged uncertainty. “The Global economic uncertainty is characterized by increased geopolitics, increased barriers to trade, threats to the supply chain, weakening of the world’s manufacturing and trade, and the production of productivity and the aging generation in developed countries.”
On the other hand, economic uncertainty also gives change. “The uncertainty of the global economy makes monetary regulations easier/less, there are improvements in the service sector, job exchanges, and consumption.”
To face the uncertainty of the global economy, John gives some recommendations. “Maintain macroeconomic and financial stability, outward orientation: ease trade and foreign investment barriers, encourage technological transfer through FDI and Increase Research and Development spending, improve investor protection and reduce excessive protections of firms, investment in Physical capital, robust labor contribution and maintain social spending to continue promoting inclusive growth.”
