Global Risk Challenges in Indonesia’s Economic Growth
Indonesia’s economic growth is a reflection of global dynamics that influence domestic conditions. With a projected economic growth of 5.2% in 2024 and a target of 5.3% to 5.6% in 2025, Indonesia must be prepared to face various challenges and risks that could hinder achieving this target.
The Ministry of National Development Planning/Bappenas has carried out an in-depth analysis of global risks that have the potential to disrupt Indonesia’s economic growth in the short term. The identified risk factors cover a wide range of aspects, from social issues to geopolitical instability.
Misinformation and disinformation are risks that need to be watched out for, considering their impact on public trust and social stability. Then, extreme weather poses a serious threat to the agricultural and infrastructure sectors, which can disrupt food supplies and overall economic activity.
Social polarization is also a significant risk, because it can hamper political and investment decision processes, as well as cloud the social climate. Meanwhile, cyber security challenges are becoming increasingly complex with increasing reliance on information technology, which can disrupt business operations and critical infrastructure.
Armed conflict between countries poses a threat to regional stability, which has the potential to affect trade and foreign investment in Indonesia. Meanwhile, a lack of economic opportunities can trigger social dissatisfaction and increase the risk of internal conflict.
No less important are the risks of inflation, forced migration, economic slowdown and pollution which can also disrupt economic growth and social welfare.
Therefore, the government and other stakeholders need to work together in taking preventive and adaptive steps to reduce the negative impact of these risks.
In facing this challenge, Indonesia must strengthen its economic resilience through inclusive and sustainable policies, as well as improve inter-institutional coordination to manage risks more effectively.
With the right steps, Indonesia can minimize these risks and continue its steady and sustainable economic growth rate.
Source: Bappenas
