TEMPO.CO, Jakarta - Indonesia's economy is expected to strengthen in the fourth quarter of this year. According to Danareksa economist Purbaya Yudhi Sadewa, Indonesia's economy is still better than neighboring countries' despite the rupiah's correction.
"In the fourth quarter we will begin to see where the economy is heading. The public should not worry, it's OK to be anxious but let's not panic," Purbaya told Tempo, Wednesday, August 26.
ven though the exchange rate had fallen to more than Rp14,000 per dollar, Purbaya said that the crisis will not last long. He said that the Indonesian economy is stronger than in 1998 and 2009 when crises happened.
"In the past, the United States and Europe were on contraction. Now the central point is in China, but things are not as bad as before," he said.
In the midst of global pressure, Purbaya said that Indonesia's economic growth is still above Malaysia, Thailand, and Singapore. Industries in these countries are very much distressed by the devaluation of the Chinese yuan. While Indonesia still manages to survive by relying on non-high technology industry.
"They were the first to be affected because of their heavy reliance on China's high technology," said Purbaya.
Nevertheless, Purbaya, who is also the 3rd deputy of strategic issues management at the Presidential Staff Office, said that the public and investors need to remain alert of negative sentiments that are bound to appear at any time. As long as the government continues to focus on its development program, he said, economic growth will be saved.