Jakarta: The ministers in charge of economic matters are still facing a worsening current account deficit which is a crucial challenge as a result of global economic slowdown.
University of Indonesia economist Lana Soelistianingsih said that improving export sector is the most effective way in combating worsening current account deficit.
However, to do so is difficult given the weakened upstream industrial sector.
“Tourism can be an alternative to be improved. However, that is not easy given the cost of travel in Indonesia, especially in eastern regions, which is quite expensive. As an example, travelling in Raja Ampat is more expensive that in New Zealand,” Lana said here on Monday, October 22, 2019.
According to her, the second most effective way is to improve foreign direct investment. She said that improving investment must be done with different approaches.
“We must promote investment opportunities to foreign countries,” she said.
“The pharmacy industry must be paid attention to as it keeps relying on the importation
of raw materials. Our population is massive and is in need of medicinal drugs as well,” she said. (Translator: Muhammad Gestinev)