How Indonesia can optimize economic relations with China, India, and ASEAN countries?

The Institute for Development of Economics and Finance’s (Indef’s) Deputy Director, Eko Listiyanto, emphasized the importance of Indonesia’s economic relations with China, India, and ASEAN countries. In light of the United States’ nine consecutive months of economic stagnation, it is crucial to strengthen strategic partnerships with other countries. The US’s inability to pay its $31.45 trillion debt by March 31, 2023, further stresses the need for Indonesia to diversify its economic partnerships. Economic growth in Asia is expected to exceed that of other continents in 2023 and 2024, with ASEAN’s growth estimated to surpass five percent. Therefore, Indonesia’s 2023 ASEAN chairmanship should be optimized to strengthen cooperation between Southeast Asian countries and Indonesia. The opening of China’s economy may also increase demand for export and import goods, but Indonesia must focus on exporting value-added products. As the US’s economic growth declines and the possibility of a government shutdown looms, Indonesia’s trade balance with the US, which currently has a surplus of $2.91 billion, may be affected. By prioritizing its economic relations with other countries, Indonesia can ensure its sustainable economic growth.