Airlangga Pamer Indonesia's Economy Enters The Top 8 Positions In The World To Pass Italy And France

Coordinating Minister for the Economy Airlangga Hartarto (Photo: Antara)

Coordinating Minister for Economic Affairs Airlangga Hartarto said Indonesia was ranked 8th in the world based on the Purchasing Power Parity (PPP) and placed above developed countries such as Italy and France.

"In terms of PPP, Purchasing Power Parity, the Indonesian economy has entered number 8, at number 8. That is higher than Italy, France, and this is a good achievement," he said at the Press Conference on High Level Meeting Results of the Central Inflation Control Team (HLM TPIP), Friday, January 31.

To note, Purchasing Power Parity is an economic comparison method that measures the real purchasing power of a country by adjusting the price difference between goods and services. As for this achievement, it shows that the purchasing power of the Indonesian people continues to increase, even though global economic challenges remain a major concern.

According to him, global dynamics remains a factor that affects future economic developments and various risks still have to be faced, such as commodity price volatility, high levels of global economic relations, American trade policy often called Trump 2.0, and vulnerability to food and energy security due to climate change.

Furthermore, Airlangga added that the global economic projection for 2025 is estimated to only reach 3.2 percent, below the historical average.

Airlangga also emphasized that he will maintain Indonesia's economic growth and in 2024, Indonesia's inflation will be maintained at 1.57 percent year on year (yoy).

In addition, Airlangga emphasized that the Government will continue to maintain inflation in the range of 2.5 percent plus minus 1 percent to support economic growth.

Airlangga added that the government will also maintain volatile food inflation in the range of 3 percent to 5 percent which is monitored weekly by related teams.

"So the volatile food figures are currently guarded weekly by the team, including PPID under the Minister of Home Affairs, so this is an intervention from the central and regional governments so that volatile food can be maintained," he said.