President Prabowo, Coordinating Minister for Economic Affairs Discuss Latest National Economic Development

President Prabowo meets with Coordinating Minister for Economic Affairs Airlangga Hartarto, at the Merdeka Palace, Jakarta, Tuesday (03/18). (Photo by: BPMI of Presidential Secretariat)

President Prabowo Subianto met with Coordinating Minister for Economic Affairs Airlangga Hartarto to discuss the latest economic developments on the national economy, plans to develop Special Economic Zones (SEZs), and several international economic collaborations.

“Earlier, we reported on the economic development and plans related to SEZs. Mr. President also discussed the SEZ in Batang,” Airlangga said to the media after the meeting at the Merdeka Palace, Jakarta, Tuesday (03/18).

Airlangga further explained that in Batang, President Prabowo paid attention to the Two Countries Twin Parks cooperation between Indonesia and Fujian, China. The cooperation aims to boost industrial investment in Batang SEZ with an investment plan of Rp16 trillion.

“This was discussed when Mr. President met with President Xi Jinping. So, this is a follow-up to the meeting,” he added.

The Minister also reported on the development of other SEZs, such as Nongsa and Singhasari. In Nongsa, the Government plans to expand the area and bring in several data centers. While in Singhasari SEZ, King’s College is in operation, and in the future Queen Mary University of London will also join. Both universities are part of the Russell Group.

Concerning national economic conditions, the Minister underscored that Indonesia’s economic fundamentals are still strong. “We know that economic growth is relatively good spatially. We also know that inflation up to February is still low where core inflation remains positive,” he said.

In addition, the February Purchasing Manager’s Index was high at 53.6, credit growth was 10.3 percent in January, and foreign exchange reserves were also at a high level at the end of February. Furthermore, Indonesia’s trade balance until February this year also recorded a surplus of US$6.61 billion, with the highest export value reaching US$14 billion in February.

Airlangga stated that Indonesia’s economic growth remains competitive compared to other countries. “Our GDP growth is still relatively high when compared to Malaysia and Chile. Our Inflation is one of the lowest, including in ASEAN,” he said.

At the meeting, President Prabowo also gave directives on optimizing People’s Business Credit (KUR) to drive financing for productive sectors. The Coordinating Minister also said that a revised Presidential Decree on KUR will be issued to include the Coordinating Minister for Food Security Affairs and the Coordinating Minister for Community Empowerment Affairs in the relevant committees.

“Mr. President has ordered that the committee should be pushed to increase productive business financing,” Airlangga said.

Airlangga also reported on the progress of several international trade cooperation agreements, such as the preparation of finalizing agreements with the Eurasian Economic Union (EAEU) involving Russia, Armenia, Belarus, Kazakhstan, and Kyrgyzstan.

In addition, the meeting highlighted the accession process to the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP). “As we process our accession to CPTPP, we are expected to open the markets of Mexico, Canada, Peru, and the United Kingdom,” Airlangga said.

In light of these positive achievements, the Government believes that Indonesia’s economy will continue to grow sustainably despite global challenges. (BPMI of Presidential Secretariat) (FI/MMB)