Surabaya: Bank Indonesia (BI) acknowledged that the Indonesian economic decline in the third quarter of 2019 was influnced by the weakening global economy.
According to BI Deputy Governor Dody Budi Waluyo, despite a growth rate of only 5.02 percent in the third quarter this year, Indonesia's economy can still grow at around five percent.
"What is important now is that the economy continues to run, domestic demand grows, consumption and investment remain as they should," Dody said here on Wednesday, November 6, 2019.
He explained that the weakening global economy is mainly caused by slowing international trade and volatile commodity prices which hamper economies around the world. He stressed that joint efforts are needed to reduce the impact of the global economic slowdown.
"It needs synergy. We need to maintain confidence that our economy does not suffer a sharp decline. This is important," he remarked.
Even though the economy is slowing down, the central bank believes economic stability is still under control. It is optimistic that low inflation and stable exchange rate can be maintained.
"This gives a positive sentiment to our economy. Our belief is that foreign investors will still see Indonesia positively. so they continue to invest here," he concluded.