Universitas Gadjah Mada
Faculty of Economics and Business

Last 2021 would not be an easy year for Indonesia. The ongoing pandemic had a substantial impact on all areas of life, one of which is the economy. However, at the end of 2021, the Covid-19 condition began to improve and the economy in Indonesia began to rise slowly. To review the economy in 2021 and examine Indonesia's economic prospects in 2022, PP KAGAMA with PP KAFEGAMA held a webinar on Friday (17/12) with the theme "Economic Review 2021 and Outlook 2022".

The webinar invited several speakers who were UGM alumni. There are Muhammad Edhie Purnawan, Ph.D., Head of the Supervision Agency of Bank Indonesia & Head of Division 1 PP KAFEGAMA, then Dr. Friderica Widyasari Dewi, President Director of BRI Danarekasa Sekuritas & General Secretary of PP KAFEGAMA, and Inarno Djadidi, President Director of the Indonesia Stock Exchange & Deputy General Chairperson of PP KAFEGAMA. The discussion in the webinar was opened by a keynote speech given by Dr. Perry Warjiyo, Governor of Bank Indonesia & Chairman of PP KAFEGAMA and the event was hosted by Prof. Dr. Didi Achjari, M. Com., Ak., CA, Dean of FEB UGM and Saka Kotamara as the MC of the event.

In his keynote speech, Perry Warjiyo revealed that in 2022 there are five global problems that await, first, the normalization of monetary and fiscal policies of developed countries. Second, the scarring effect of the pandemic on corporations and financial system stability. Third, the expansion of digital payment systems between countries and the risk of crypto assets. Fourth, the increasingly strong demands of the green financial economy from developed countries. Fifth, the widening gap and the need for financial inclusion. In addition, he also revealed that in 2022, the digital world will become an economic source because digital economy activities will increase rapidly.

Inarno Djadidi, as the first speaker, explained the current capital market conditions and prospects in 2022. He explained that the total number of capital market investors has increased 8x since 2016, and when viewed from the age classification in 2021, young and millennial investors with a range of ages 18-25 years old still dominate as investors in the Indonesian capital market. "This is a good trend to help increase literacy in investment activities in Indonesia," he said in the webinar.

The Indonesia Stock Exchange also issued strategic initiatives in 2022. There are continuing the investor protection program, increasing the accumulation of IPOs and listings, then enhanced disclosures, ESG initiatives, bond trading – increasing SPPA, and issuing new products, namely structured warrants and indices.

Furthermore, Edhie Purnawan, as the second speaker, explained the condition of the monetary, fiscal, and real sectors in 2021 and the outlook in 2022. He revealed that global economic developments in 2021 were influenced by the pandemic, causing movement and uncertainty around the world. This has an impact on rapidly changing economic indicators such as the inflation rate and the changing unemployment rate. He also revealed that the challenge that will be faced in the future is the need for mitigation of the performance of the national economic recovery.

The last speaker, Friderica Widyasari, explained the current conditions and the outlook for the financial sector in 2022. She revealed that there are setting the course to be faced in 2022, firstly domestic strength, because Indonesia is in a strong position with a clear trend of economic growth so that it becomes a key differentiating factor for attracting investment. Second, there are high external risks, especially in the potential shift in fiscal or monetary policy in 2022. Third, there are two investment themes in 2022, namely The Growth Proxies and The Green and New Economy Proxies. In the end, Friderica projects that the JCI target in 2022 is 7,300 – 7,550. with corporate net profit growth in the range of 12%.

Reportage: Zahra Dian