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These are 4 Fundamentals That Need to be Improved to become a Resilient Indonesia

Jakarta, 09/08/2019 MoF - Minister of Finance Sri Mulyani Indrawati explained four fundamentals that need to be improved continously to be resilient to global economic shocks. First is productivity, second is the level of competitiveness associated with current account deficits, third is financial market deepening and fourth is structural policies to improve investment.

"We need some fundamentals that we need  to improve, namely productivity, competitiveness related to current account deficit, financial deepening and in terms of structural policies to improve our investment," explained the Minister in the Breakfast Forum at the University of Indonesia Faculty of Economics and Business Faculty Alumni Association (Iluni FEB UI) themed "Financial Stability in the Middle of a Jaded World Economy" at Graha CIMB Niaga, Jakarta, Friday (09/08).

The policy mix is ​​expected to make Indonesia resilient in facing global turmoil and changes in the country that are often unpredictable and dynamic such as financial crises or policies in developed countries, oil and other commodity price fluctuations, trade wars, economic booms or boosts, taper tantrum and even recently a currency war which has been started by the People's Republic of China (PRC).

She asserted the government in collaboration with other relevant stakeholders (for example Bank Indonesia / BI, the Financial Services Authority / OJK and the Deposit Insurance Corporation / LPS) had, were and continue to make the right policy mix in improving and strengthening Indonesia's economic fundamentals including domestic structural reforms.

Therefore, the Minister emphasized the need for economic independence which is mainly sourced from within the country so that Indonesia is able to survive in the event of global shocks. Indonesia has promising capitals, for example in terms of population, large economic potential, and broad geography and natural resources. (btr/hpy/nr)