April 20, 2024 3:34 am
World Bank calls on new governments to deliver policy stability for Economy

The World Bank is urging countries, including Indonesia, to prioritize policy clarity for businesses in order to foster long-term economic growth amidst global uncertainty and limited fiscal and monetary measures. Manuela Ferro, the Vice President of the World Bank East Asia and Pacific, emphasized the importance of addressing policy uncertainty, particularly as many countries will undergo leadership changes this year.

Ferro highlighted the challenges of providing fiscal or monetary stimulus to sustain growth over the long term. She underscored the significance of businesses having a clear understanding of the investment environment they operate in. Implementing competition-enhancing policies can help attract more investors into economic activities. The upcoming elections in many countries, including Indonesia, will have significant implications for policy direction and economic growth.

In Indonesia, Prabowo Subianto has been declared the winner of recent polls and is set to be sworn in this October alongside his running mate Gibran Rakabuming Raka, son of incumbent President Joko “Jokowi” Widodo. The International Monetary Fund has issued warnings about escalating fiscal risks such as tight financing conditions and growing concerns about debt vulnerabilities. It is imperative that countries proactively manage these risks to ensure sustainable economic growth.

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