In the sector of global economy, Indonesia is a growing country in Southeast Asia. It is an island nation renowned for its abundance of natural assets. Nevertheless, the economic level in this country is considered quite strong and stable in the world.
Indonesia is one of the strongest and most persistent high growth countries in the world. This is evidenced by the economic growth that can be sustained above 5% in 6 consecutive quarters.
Indonesia in Global Economy after COVID-19 Outbreaks and Ukraine War
Certainly, economic growth in all countries has various constraints. However, many countries will experience a significant slump in 2023. This is due to the increasing global level, especially when the COVID-19 outbreaks in various sectors.
The global economy is also still under high tension due to geopolitical escalation, both in Ukraine and between other major countries. Besides, debt distress in various countries, especially in developing and emerging countries as well as in developed countries, is also hindering the country’s economic recovery.
On the other hand, Indonesia’s economy grew stronger amidst the global economic slowdown. Domestic economic performance is well preserved, as inflation continues to decline and people’s purchasing power is also quite strong.
Indonesia’s inflation in May 2023 was recorded at 4.0% ( year on year), this percentage is claimed to be a better value than developed countries such as Italy, Australia, Germany, and Singapore.
What is Indonesia’s Economy Rank?
Based on a survey of the projected GDP value in 2023, it shows that Indonesia’s economy has increased to 16th out of the top 20 countries in the world. The GDP value is the sum of the added value of goods and services produced by various units of production in the territory of a country within a particular duration of time, normally determined on every year.
Indeed, ranking 20th and being the largest global economy is a good thing for Indonesia going forward. Indonesia is a Southeast Asian country whose economy is maintained and is included in the 2023 top global economy.
Indonesia is also one of the emerging market economies of the world. The country is also a member of the G-20 major economies and is categorized as an early industrializing country.
Factors Causing Indonesia’s Economy to Rebound
In line with this fact, by 2030, Indonesia could be the largest global economy. As mentioned earlier, in 2023, Indonesia was ranked 16th out of the top 20 countries in the world. For information, Indonesia’s GDP has exceeded $1 trillion for the first time in 2017.
By 2030, Indonesia’s economy will be below America (ranked 3rd) and above Turkey (ranked 5th). Of course, this will be favorable for the growth and progress of the country.
The main factors that influence this country’s economy to rise globally are:
- 1. Proper utilization of natural resources as well as their efficient processing
- 2. The increase of effective and professional human resources
- 3. Stronger export and import levels in various sectors
- 4. A surplus trade balance
These are the primary factors for Indonesia to rise from its economic downturn. The government is also taking plans to accelerate the national economic recovery amidst the potential risks of inflation going forward by strengthening collaboration and policy coordination to maintain macro-economy stability and encourage the momentum of economic revival.
However, global risks remain high, especially the impact of rising geopolitical tensions, financial sector volatility, and contracting global manufacturing. The good performance of the state budget shows the resilience of the Indonesian economy amidst global pressures. The state budgets will remain the main instrument in supporting Indonesia’s economic recovery and transformation.
Although the country’s economy is getting better, this does not mean that Indonesia remains calm and does not do anything. Instead, the government must plan for the future and how to achieve Indonesia Maju 2045 program and a stable global economy in the top 5 by 2030. Of course, this is not the task of the government alone but also the task for all Indonesians to continue to unite to achieve a brighter Indonesia.
It represents a simple overview of Indonesia’s economical position, which keeps improving year after year until it reaches the highest position in the global economy and grows the only Southeast Asian country in the top 20 that performs better than Singapore.
