Indonesia experienced good economic growth in 2018: Jokowi

In the midst of global economic uncertainty, national economy grew positively.

REPUBLIKA.CO.ID, JAKARTA -- President Joko Widodo (Jokowi) chaired a plenary cabinet meeting on the 2019 national program and activities on Monday. He drew attention to the good economic growth that Indonesia had experienced in 2018.

"I got a report from the finance minister that in the midst of global economic uncertainty, our national economy grew positively," Jokowi stated.

The plenary cabinet meeting was attended by Vice President Jusuf Kalla, all ministers of the Working Cabinet, Indonesian Military (TNI) Commander Marshal Hadi Tjahjanto, National Police Chief General Tito Karnavian, and several other state officials.

"We expect (the national economy) to grow by around 5.15 percent, so inflation will then be controlled at a low level, under 3.5 percent, and the rupiah exchange rate will continue to be maintained," the president stated.

The basic assumption of Indonesia's national macroeconomics in 2018 estimated economic growth to reach 5.4 percent, inflation to be some 3.5 percent, and the exchange rate of the rupiah against the US dollar at Rp13,400 per US dollar. The president also noted that the realization of the 2018 State Budget showed a sound and credible performance.

"Based on the last report I received, there is a deficit of 1.76 percent of the GDP (gross domestic product). The primary balance is also very important, and it has reached minus Rp1.8 trillion, which is close to zero, and this should be underlined. This result is much better than the target of Rp87.3 trillion in the state budget," Jokowi remarked.

The primary balance is state revenues minus spending, excluding debt interest payments. The primary balance in 2017 was recorded at minus Rp29.9 trillion.

"Revenues of Rp1,942 trillion exceed the state budget target, which is 102.5 percent of the 2018 state budget. State expenditure to optimally support development reaches 99.2 percent of the 2018 state budget," the president revealed.

However, Jokowi acknowledged that Indonesia's economy in 2019 would still face some tough challenges. He also stressed that improving the quality of human resources will be one of the priorities in 2019.

"As I have stated, we will focus on human resource improvement in 2019. We will strengthen human capital massively by conducting more trainings through vocational schools and vocational courses. These would be our strength," Jokowi added.

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