Why is economic stability important?
Promoting economic stability is the main goal of economic policy. Economic stability enables other macro-economic goals to be achieved, such as stable prices and stable and sustainable growth. It also creates the right environment for job creation and balance of payments.
Stability is important in making economic decisions. This makes it easier for businesses to make predictions on economic indicators such as inflation, which is useful for formulating strategies such as setting selling prices or increasing employee salaries.
Conversely, instability can increase uncertainty. It also discourages investment, stifles economic growth, and undermines living standards. The challenge for policy makers is to minimize volatility without compromising the economy’s ability to raise living standards through increased productivity, employment and sustainable growth.
On November 13, 2022, at the ASEAN Summit in Cambodia, Indonesia received the mandate to hold the Chairmanship of ASEAN 2023 Indonesia through leadership in ASEAN 2023 which will carry the theme “ASEAN Matters: Epicentrum of Growth.” Where ASEAN Matters consists of three important elements namely strengthening the capacity and effectiveness of ASEAN, ASEAN unity, and ASEAN centrality.
While the epicentrum of growth is related to ASEAN’s role as the center of regional and world economic growth which consists of four important elements, namely health architecture, energy security, food security, and financial stability. In detail, Indonesia raises three priority issues in the economic sector including recovery and rebuilding, digital economy, and sustainability whose implementation is translated into 16 Priority Economic Deliverables (PED) for 2023.
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“Indonesia’s chairmanship in ASEAN will focus on handling multidimensional crises such as food, energy and financial crises,” said Coordinating Minister Airlangga Hartarto. Indonesia will also strive to strengthen ASEAN’s position as a stable and peaceful region while upholding international law. In addition, Indonesia seeks to strengthen cooperation so that ASEAN is able to become a region that is strong, inclusive and has sustainable economic growth.
Through its important role as the 2023 ASEAN Chairmanship, it further emphasizes Indonesia’s position as a global middle power. This will substantially influence the global agenda as well as be part of the solution to global problems. “Mr. President Joko Widodo believes that by 2045 ASEAN will become a group of countries that are more adaptive, responsive and competitive in line with the ASEAN global agenda,” said Coordinating Minister Airlangga Hartarto.
Silvia Jultikasari Febrian is a student of International Relations at the Islamic University of Indonesia. Her areas of interests are international topics, technology, science, and socio – culture.