Coordinating Minister for Maritime Affairs and Investment, Luhut Binsar Pandjaitan, has stated that Indonesia could catch up with China and India to emerge as a new economic force within five years, according to reporting from Antara News.
“New economic power lies in China, India, and in my opinion, in the next five years, Indonesia can become a new economic force, as long as we are truly consistent,” the minister said during the “National Coordination Meeting of Finance and Development Supervisory Agency (BPKP) Internal Monitoring” on Wednesday.
To achieve the target, the role of BPKP in monitoring all ministries, agencies, and regional units is crucial, he said, “so we all can walk in the right corridor and play fairly, thereby also reducing the possibility of corruption here and there,” Pandjaitan said.
Antara News say that the minister is confident that Indonesia can catch up with China and India, after learning from the developing industrial policy, which is apparent in the protectionist stance adopted by developing countries; something that used to only be carried out by developed countries.
He also highlighted many companies’ readiness to mitigate the concentration risk and impacts that could arise from areas experiencing conflicts, say Antara News.
He explained that China and India managed to become new economic forces because the two states increased their defence budgets and tapped into their growing economic potential by making foreign affairs policies that could meet domestic needs.
The minister said that Indonesia can benefit from the changes in global supply chains on account of the complex geopolitical situation, citing the example of Taiwan, which has a major role in global chip supply and distribution.
However, with the ever-increasing tension, the US intends to decrease its dependence on imports and push for more domestic chip production. The escalating conflict between China and Taiwan has also increased the risk of war between Taiwan and the US versus China, he added.
Given its geographical position, Indonesia can play an important role amid such conditions, the minister said.
Source: Antara News
Image by Said Alamri on Unsplash
