Bisnis.comJAKARTA – Indonesian Finance Minister Sri Mulyani said the Indonesian economy is currently in a relatively secure and well maintained position.

This is evidenced by the well-maintained supply-demand side and stable inflation in Indonesia compared to other countries.

“Inflation is indeed contained because we also give a lot of subsidies. But exports and consumption are weak proof this with the side supply also reactive, we can get growth 5.4% with relatively stable inflation,” he said, quoting a press release on Sunday (08/07/2022).

The Central Statistical Agency (BPS) noted that Indonesia’s economic growth reached 5.44% year-on-year (yr) in the second quarter of 2022.

This figure is already higher than before the pandemic, which reached 5.05% in the second quarter of 2019.

Although in a secure position, the state treasurer warned Indonesia to remain vigilant as several economic challenges will need to be addressed in the future.

At least four challenges must be anticipated by Indonesia. Firstthe policies of developed countries, one of which is whether the Fed raises interest rates more aggressively.

He said aggressively raising interest rates could increase inflation, which would impact economic growth in developing countries.

Secondgeopolitical conflict, which is not only the conflict between Ukraine and Russia, but also the ongoing conflict in Taiwan.

The next challenge is climate change, where one of the impacts of climate change can be seen from the drought that has hit many countries in Africa like Madagascar, the temperature in India which can be deadly reaching 41 degrees Celsius, the surge heat in Europe, and wildfires in Australia.

The final challenge is digital technology. This challenge, he said, has been accompanied by the emergence of digital currencies and cryptocurrencies.

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