Luis E. Breuer, Chairman of International Monetary Fund (IMF) mission to Indonesia, visited Faculty of Economis and Business UGM on Thursday (16/11), after his visit to Jakarta to study and evaluate Indonesia’s economic condition.
Luis E. Breuer gave a general lecture at Djarum Foundation Auditorium in the Pertamina Tower of the Faculty. Hundreds of students from Yogyakarta participated in the lecture, including from Universitas Ahmad Dahlan, Universitas Kristen Duta Wacana, and STIE YKPN.
The lecture was opened by Prof. Mahfud Solihin, M. Acc., Ph.D, Vice-Dean for Academic and Student Affairs. Luis Breuer described economic impacts in several countries during the global crisis in 2008. In his opinion, the crisis impact was not significant to Indonesia as to the US and European countries.
“This was due to the economic condition of Indonesia which was good, supported by the economic extent and large population. After ten years of global crisis, the global economy was getting better,” he said.
Luis Breuer explained the IMF published economy outlook twice a year. According to the report, Asia’s economic growth is increasing currently.
IMF has projected Asia’s economic growth in 2017 to be 5.6% and in 2018 to be 5.5%, while Indonesia’s economic growth in 2017 and 2018 at 5.1% and 5.3% respectively. Asian countries contribute as much as 2/3 of global economic growth of which 1/3 is from China.
According to Breuer, economic growth which was increasing normally was followed by increased inflation. The fact was that Asia’s high economic growth was instead followed by low inflation.
Bank of Indonesia has reduced the rate twice because the inflation was low and rupiah exchange was stable. Indonesia could also maintain its economic growth by 5 percent, low inflation, financial stability, stable rupiah exchange, and stable interest rate.
“Indonesia can actually make a 7% economic growth by two means, maintaining economic stability and understanding the slowing economy that happens,” said Luis Breuer.