Friday, June 28th, the Faculty of Economics and Business at the Universitas Gadjah Mada (FEB UGM) held a seminar on the results of cooperation with the Economic Bachelor Association (ISEI), Branch Yogyakarta, in the Kertanegara Room, FEB UGM. The seminar entitled “Indonesia-Russia: Economic Opportunities and Challenges” invited M. Wahid Supriyadi, Ambassador of the Republic of Indonesia to the Russian Federation and the Republic of Belarus. The seminar was opened with the presentation of facts and also an overview of the economies of the two countries.
Russian economic indicators in the span of 2000-2017 were able to produce the highest Gross Domestic Gross (GDP) of USD 2,297 trillion in 2013. With economic growth continuing to increase from -0.2 percent in 2016 to 1.6 percent in 2018, Russia’s economic growth is projected to reach 1.8 percent in 2021. Inflation in 17 years experienced significant fluctuations over time. Russia had recorded inflation of 37 percent in 2000 which gave a boost to the Central Bank of Russia to keep the interest rates at 7.85 percent. As a result, inflation in 2017 was able to be reduced to 5.3 percent even though it was much higher than in 2009 with the lowest inflation of 1.9 percent.
The Institute of Management and Development (IDM) in IDM Word Competitiveness Ranking 2019 ranks the competitiveness of 62 countries in the world. The economy is also influenced by many issues, ranging from reservations to globalization to skepticism over automation as a response to an interconnected and increasingly dynamic world. Indonesia was ranked 32nd, increased 11 levels compared to the previous year. Meanwhile, Russia was ranked 45th. However, when compared to the Ease of Doing Business Index, Indonesia was only ranked 73rd in 2019, far below Russia which was ranked 31st. However, this number experienced an improvement from 2014 which was only in a position 120th. When viewed from the Logistics Performance Index, Indonesia is only ranked 46th, while Russia is in the 75th position.
McKinsey Global Institute in 2012, projects that Indonesia will be named the 7th Largest GDP in The World 2013 “. In line with Pricewaterhouse Coopers (PwC), which in 2017 predicted that Indonesia would occupy the position of the 4 largest producing countries in the world in 2050. Indonesia’s main export to Russia is palm oil which reached 601.408 thousand dollars in 2018 ago. Followed by rubber, coconut “copra”, cocoa, and amino compounds. Exports with the highest increase to Russia were organic chemicals of 49,315,421 dollars followed by animal or vegetable fats and oils, toys, iron or steel items, and fish and crustaceans, mollusks and other aquatic invertebrates.
Indonesia began pioneering the establishment of the Free Trade Agreement (FTA) with five Eurasian countries incorporated in the Eurasian Economic Union (EAEU). The five countries are Armenia, Belarus, Kazakhstan, and Russia. Indonesia is currently in the process of signing the Memorandum of Cooperation (MoC). To increase trade cooperation, Indonesia will hold the 4th Indonesia-Russia Business Forum and Indonesia Festival in August 2019.
Source: Leila Chanifah Zuhri
