UNAIR NEWS – FEB UNAIR, in collaboration with the World Bank Group, hosted a seminar discussing the current condition and economic prospects of Indonesia. This inaugural visit of the World Bank Group took place on Tuesday, April 30, 2024, at the Fadjar Hall, FEB, Dharmawangsa-B UNAIR Campus.
The collaborative seminar featured several speakers, experts and economists, from the World Bank Group. The overarching theme of the seminar was the “Outreach Event of the Indonesia Economic Prospects (IEP) December 2023 Edition – Climate Action for Development.”
Post-pandemic conditions
The first speaker from the World Bank Group, Anthony Obeyesekere, delivered a presentation titled “Indonesia 2024: Future Economic Prospects.” Anthony revealed that the global economy had weakened due to the pandemic.
“The global economy is growing slower than before the pandemic. It is happening in both developed and developing countries. Furthermore, there are several risks that could impact the country’s economy, such as geopolitical conflicts, inflation shocks, fragmentation and trade, and others,” explained Anthony.
Anthony then mentioned that Indonesia has a strong domestic demand and is supported by good macroeconomic policies. Therefore, he continued, post-pandemic economic growth should be faster.
“Some of the impacts of the COVID-19 pandemic have not been effectively addressed. Therefore, there is a scarring effect when demand increases, but businesses need more time to prepare production capacities to return to pre-pandemic levels,” elaborated Anthony.
Prospects and reform agenda
Anthony also showed in his presentation that Indonesia’s economic growth falls into Good category. However, he said, there needs to be a continuous agenda because economic growth in Indonesia is still relatively slow.
“Indonesia’s growth is good, but it needs to be significantly improved to become a high-income country by 2045. Policy reforms are needed to enhance international competitiveness,” said Anthony.
Anthony pointed out several factors that could boost international competitiveness. These factors include public management, human resources, infrastructure, and macroeconomic stability. Furthermore, Anthony emphasized that the Indonesian government must start focusing on efficiency and innovation-supporting factors if it wants to compete internationally.
“The lack of efficiency and innovation-supporting factors is one of the reasons for slow economic growth. Research and development (R&D) and business sophistication should be factors that are beginning to be considered to support Indonesia in competing globally,” concluded Anthony.
Author: Adinda Aulia Pratiwi
Editor: Yulia Rohmawati
