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Sri Mulyani Showcases To The IMF The Successful Development Of Indonesia's Economic Resilience

Finance Minister Sri Mulyani Indrawati has asserted that Indonesia has successfully established fundamental economic resilience, allowing it to maintain stability despite being impacted by the global financial crisis of 2008 and the Covid-19 pandemic in 2020.  

In an interview with Finance and Development Magazine, published in December 2024 by the International Monetary Fund (IMF), Sri Mulyani shared her strategies for navigating Indonesia's economy through frequent global crises.  

Serving as the nation's treasurer during the presidencies of SBY, Jokowi, and currently Prabowo, she emphasized that the most significant achievement of the Indonesian government has been the restoration of stability and credibility in macroeconomic policy following the monetary crisis of 1997-1998. She highlighted that the establishment of an independent central bank was crucial in fostering this stability and credibility. Furthermore, she noted that the government has consistently exercised caution in managing the budget deficit and the debt-to-GDP ratio. 

Additionally, Sri Mulyani believes that Indonesia has become more attractive to foreign investors due to the government's substantial investment in infrastructure development.  

She mentioned that 20% of the national budget has been allocated for human resource development. Moreover, she explained that Indonesia has introduced public-private partnerships (PPP) to finance sectors that cannot be supported by the state budget. "When we [Indonesia] were still among the five vulnerable countries, we faced a significant fiscal deficit any fluctuation in currency or interest rates could trigger a crisis. Currently, our budget is in surplus, and the financial sector is robust," stated Sri Mulyani, as quoted from the IMF website on Thursday, December 26, 2024. 

Tag: IMF Sri Mulyani