The International Monetary Fund (IMF) has issued a warning in a report last October, emphasizing the need for countries to address growing fiscal risks. These risks include tight financing conditions and rising concerns about debt vulnerabilities. To drive sustainable economic growth, the World Bank is encouraging countries, including Indonesia, to enhance policy clarity for businesses.
Manuela Ferro, Vice President of the World Bank East Asia and Pacific, highlighted the importance of addressing policy uncertainty, especially with multiple countries experiencing leadership changes this year. She emphasized that new administrations should promptly communicate policy directions to households and companies to provide clarity and certainty.
Ferro also emphasized the importance of creating a competitive investment regime that would attract more investors into economic activity. With more than half of the world’s population voting this year, several Asian countries, including Indonesia, have already held elections. Indonesia’s General Elections Commission recently announced Prabowo Subianto as the winner, set to be sworn in as the new Defense Minister in October, along with his running mate Gibran Rakabuming Raka, President Joko “Jokowi” Widodo’s eldest son.
Ensuring policy clarity and certainty for businesses is critical for sustainable economic growth, especially as countries navigate global uncertainty and leadership changes.
