Indonesia’s Economy Returns to Pre-pandemic Levels

In a press statement after a cabinet meeting on finances and the 2023 state budget plan, Indonesian Finance Minister, Sri Mulyani Indrawati said that the Indonesian economy has returned to its pre-COVID-19 pandemic level according to reporting from Antara News and Tempo.

“The Indonesian economy has reached the pre-COVID-19 level as calculated from its GDP, both in 2021 and 2022. Meanwhile, the budget deficit is relatively moderate,” she said.

Statistics Indonesia’s data shows that the national economy based on GDP in Q2 2022 reached IDR 4,919.9-trillion, a growth of 5.44-percent compared to the same period last year.

In 2021, the figure was IDR 16,970.8-trillion, a growth of 3.69-percent, with a GDP per capita of IDR 62.2 million or USD 4,349.50.

Sri claimed the economic growth in Q2 2022 exceeded the government’s optimistic forecast of 5.2-percent. “This is an impressively high growth because last year’s growth in the second quarter was quite high at 7.1,” she added.

The government, she went on, is determined to maintain the economy at a good level. “The 2022 economy is already in a good position and must continue to be maintained in the second semester,” Sri said.

To support this, she reminded the President’s directive that asked all ministries and government agencies to realize government spending in 2022 by focusing on buying products that have high local content.

“This will support a stronger economic recovery in the third and fourth quarters when the world is experiencing turbulence,” Sri stated.

Meanwhile, Sri Mulyani has also gone on record as revealing that global economic growth is projected to weaken, due to an increasing risk of stagflation, uncertainty in global financial markets, inflationary pressures, and the geopolitical situation.

“Our global environment will weaken, while inflationary pressures will increase,” she said in a press statement after the Plenary Cabinet Session at the State Palace, Jakarta, Monday (08/08).

The Minister explained that the IMF lowered its global economic projection from 3.6-percent to 3.2-percent for 2022 and in 2023 it would be even weaker from 3.6-percent to 2.9-percent. Meanwhile, the IMF also predicts that inflation in developed countries in 2022 will rise to 6.6-percent and developing countries will be at the level of 9.5-percent.

“With the very high increase in inflation in developed countries, there was a reaction in terms of monetary policy and tightened liquidity. This spurred so-called capital outflows and volatility in the financial sector. This is what we must continue to manage domestically,” she said, suggesting this was a problem that must be overcome together with a combination of fiscal, monetary, and structural policies.

“We together with the Governor of Bank Indonesia will continue to formulate fiscal and monetary policies that are flexible, but also at the same time effective and credible,” she said.


Sources: Tempo, Antara News, The Ministry of Finance of The Republic of Indonesia

Latest Article
Govt Allocates More Subsidies for Electric Motorcycles
According to reporting from Antara News, Dadan Kusdian, Indonesia’s Secretary General of the Ministry...
Netherlands Consider Easier Visas for Indonesians
Citing Antara News, Tempo is reporting that Indonesia and the Netherlands discussed strengthening consular...
Ministry to Implement KRIS at 3,060 Hospitals by 2025
Indonesia’s Health Ministry is targeting to get more than 3,000 national hospitals to implement...
Hospital-based Specialist Doctor Program Launched
Speaking at the launch of a hospital-based specialist doctor program on Monday (6/5/24,) Indonesia’s...
Indonesia Anticipates Prabowo’s Cabinet
Prabowo Subianto and Gibran Rakabuming Raka will be sworn in as the country’s new president and vice...

Andrzej Barski

Director of Seven Stones Indonesia

Andrzej is Co-owner/ Founder and Director of Seven Stones Indonesia. He was born in the UK to Polish parents and has been living in Indonesia for more than 33-years. He is a skilled writer, trainer and marketer with a deep understanding of Indonesia and its many cultures after spending many years travelling across the archipelago from North Sumatra to Irian Jaya.

His experience covers Marketing, Branding, Advertising, Publishing, Real Estate and Training for 5-Star Hotels and Resorts in Bali and Jakarta, which has given him a passion for the customer experience. He’s a published author and a regular contributor to local and regional publications. His interests include conservation, eco-conscious initiatives, spirituality and motorcycles. Andrzej speaks English and Indonesian.

Terje H. Nilsen

Director of Seven Stones Indonesia

Terje is from Norway and has been living in Indonesia for over 20-years. He first came to Indonesia as a child and after earning his degree in Business Administration from the University of Agder in Norway, he moved to Indonesia in 1993, where he has worked in leading positions in education and the fitness/ wellness industries all over Indonesia including Jakarta, Banjarmasin, Medan and Bali.

He was Co-owner and CEO of the Paradise Property Group for 10-years and led the company to great success. He is now Co-owner/ Founder and Director of Seven Stones Indonesia offering market entry services for foreign investors, legal advice, sourcing of investments and in particular real estate investments. He has a soft spot for eco-friendly and socially sustainable projects and investments, while his personal business strengths are in property law, tourism trends, macroeconomics, Indonesian government and regulations. His personal interests are in sport, adventure, history and spiritual experiences.

Terje’s leadership, drive and knowledge are recognised across many industries and his unrivalled network of high level contacts in government and business spans the globe. He believes you do good and do well but always in that order. Terje speaks English, Indonesian and Norwegian.

Contact Our Consultants

[wpforms id=”43785″]

Ridwan Jasin Zachrie

CFO of Seven Stones Indonesia, Jakarta

Ridwan is one of Indonesia’s top executives with a long and illustrious career in the financial world. He holds several professional certifications including being a Certified Business Valuer (CBV) issued by the Australian Academy of Finance and Management; Broker-Dealer Representative (WPPE); and The Directorship Certification for Directors and Commissioners, issued by the Indonesian Institute of Commissioners and Directors.

His experience includes being the Managing Director at one of the top investment banking groups in the region, the Recapital Group, the CFO at State-owned enterprises in fishery industry and the CEO at Tanri Abeng & Son Holding. He’s also been an Independent Commissioner in several Financial Service companies and on the Audit and Risk Committee at Bank BTPN Tbk, Berau Coal Energy Tbk, Aetra Air Jakarta as well as working for Citibank, Bank Mandiri and HSBC. His last position was as CFO at PT Citra Putra Mandiri – OSO Group.

Ridwan has won a number of prestigious awards including the Best CFO Awards 2019 (Institute of Certified Management Accountant Australia-Indonesia); Asia Pacific Young Business Leader awarded by Asia 21 Network New York USA (Tokyo 2008); UK Alumni Business Awards 2008 awarded by the British Council; and The Most Inspiring Human Resources Practitioners’ version of Human Capital Magazine 2010.

He’s a member of the Board of Trustees of the Alumni Association of the Faculty of Law, Trisakti University, Co-Founder of the Paramadina Public Policy Institute and actively writes books, publications and articles in the mass media. He co-authored “Korupsi Mengorupsi Indonesia” in 2009, which helps those with an interest in understanding governance in Indonesia and the critical issue of corruption. Ridwan speaks Indonesian and English.

Per Fredrik Ecker

Managing Director of Seven Stones Indonesia, Jakarta

Per is the Managing Director of the Seven Stones Indonesia (SSI) Jakarta office and has more than 25-years’ experience in Indonesia, China, and Western Europe. He previously worked in senior management positions with Q-Free ASA, Siemens AG, and other companies in the telecom sector. Over the last six years, he has been the Chairman of the Indonesia-Norway Business Council (INBC) and recently become elected to be on the board of EuroCham Indonesia.

His most recent experience is within Intelligent Transport Solutions (ITS), Telecom, and other sectors within the Indonesian market. He is today through his position in SSI and by representing Norway Connect, promoting Nordic and European companies that would like to explore business opportunities in the Indonesian market. He’s also playing an active role to help create the Nordic House concept in Jakarta that will provide an excellent platform for Nordic companies entering Indonesia, where they’ll find a community that can offer support with trusted information and affordable services to enter this market.