Jakarta. Indonesia’s 2022 economic growth is beating most G20 countries, but is still far behind the world’s largest oil exporter Saudi Arabia, according to Chief Economic Minister Airlangga Hartarto. 

Government data showed that Indonesia’s economy climbed 5.31 percent in 2022. G20 nations such as the UK, the US, and Japan only saw 4.1 percent, 2.1 percent, and 1.4 percent economic growth last year, respectively. Saudi Arabia’s economy jumped by a whopping 8.7 percent in 2022.

“Our economic growth is one of the highest in the G20. We are losing to Saudi Arabia which has been relying on the oil economy. How dare they cut oil production quota amidst a situation like this so they can still enjoy premium oil prices,” Airlangga told the 2023 Economic Outlook forum hosted by B -Universe Media Holdings in Jakarta on Tuesday.

The minister was alluding to the decision by the Organization of the Petroleum Exporting Countries (OPEC) and its allies to chop quotas. OPEC+ in October decided to slash their production quota by 2 million barrels of oil per day for the next 14 months. The quotas will remain in place until Dec. 2023.

At home, the economy is back to the pre-pandemic level. Indonesia’s economy expanded by 5.02 percent in 2019 but shrank by 2.07 percent a year later after the Covid-19 pandemic struck the Southeast Asian country. Indonesia’s economy then slowly climbed by 3.69 percent in 2021 and then by 5.31 percent a year later. The 5.31 percent that Indonesia saw in 2022 is among the highest figures that Indonesia has posted in a decade, according to Airlangga. 

“Indonesia’s government spending came negative last year, but if only we could push the spending, our economic growth would be even higher,” Airlangga said.

Indonesia is aiming for 5.3 percent growth this year.

Airlangga said the state capital project Nusantara and the downstream industry policy, among other things, could spur the economy in 2023. Indonesia banned the export of unprocessed nickel ores in 2020. The resource-rich country will do the same to other ores such as tin, copper, and bauxite.

“We have begun the state capital this year and will continue to become a long-term program. Infrastructure is a boon to the economy. A large-scale infrastructure project like Nusantara is set to give an impetus to the economy,” Airlangga said.

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