Indonesian financial authorities have been discussing geopolitical developments to anticipate the risks affecting the economy as tensions grow across the Middle East, the recent war in Ukraine and elections in other countries. Sri Mulyani, the Minister of Finance of Indonesia, commented in a press conference that Indonesia’s financial market got back on track in the second quarter; however, the risk prevails due to geopolitical uncertainty.
Indonesia’s economic growth is expected to fall between 5 and 5.2% in 2024. Indonesian financial regulators are managing the geopolitical landscape with key trends of addressing bottlenecks, reforming civil services, expanding the investment base, and focusing on infrastructure that helps the nation navigate challenges.
As per the World Bank’s Indonesia Economic Prospects report, Indonesia’s GDP growth is forecasted to average 5.1% from the year 2024 to 2026. Ahead of global geopolitical risk, despite the headwinds there is a subsiding community, increased volatility in energy, and rising geopolitical uncertainty.
In a joint conference with other regulators, Indonesia is seeking measures to monitor geopolitical development that will help revive the economy amid border tension and export challenges. They discussed that it will take some time; however, economic development will soon be assessed.
