Jakarta: The International Monetary Fund (IMF) has projected Indonesia's economy to grow 3.3 percent in 2021, a slight increase from the 3.2-percent projection in October.
"Indonesia continues to respond with comprehensive and well-coordinated policy measures to protect the lives and livelihoods of its citizens due to the COVID-19 pandemic," Assistant Director of the Western Hemisphere Department at the IMF Cheng Hoon Lim stated in a virtual media briefing here on Wednesday.
Lim noted that the steps taken by the Indonesian government had succeeded in maintaining economic and financial stability, thereby helping the current domestic economy to recover at a swift pace in the midst of low inflation.
On the other hand, the credit outlook had also improved with a strong external position, driven by favorable global commodity prices.
With adequate reserves and relatively low public debt, Indonesia is well-positioned to extend pandemic support further if severe downside risks arise.
"With the recovery underway, this is the right time to gradually restore the pre-pandemic macroeconomic policy framework," Lim remarked.
She cautioned that several challenging risks loom large over the rest of the world, so it is important for Indonesian authorities to remain agile in responding to unexpected shocks, and during uncertainty, exercise caution and adapt quickly to developments.
Indonesia is considered to be a resilient and strong country that is able to withstand unexpected shocks through adaptability and agility.
"I am very confident about Indonesia's ability to deal with downside risks," she affirmed.