Opportunity to Strengthen National Solidarity

It is hoped that the enthusiasm in the regions during Lunar New Year will be a good opportunity to strengthen solidarity to realize the vision of developing Indonesia into a more advanced and prosperous nation.

KOMPAS/RONY ARIYANTO NUGROHO

A family gathered when hundreds of prayer candles were completely lit at the peak of the 2574 Chinese New Year celebration at the Dhanagun Temple (Hok Tek Bio), Bogor City, West Java, Sunday (22/1/2023) dawn.

JAKARTA, KOMPAS — President Joko “Jokowi” Widodo and Vice President Ma'ruf Amin wished all Indonesians who are celebrating Lunar New Year a “happy Imlek 2574”. It is hoped that the Lunar New Year celebration will become the right opportunity to strengthen solidarity between citizens.

“The times have changed, the years have passed, and the challenges may also be different, but one thing that must always be maintained is the hope that tomorrow will be happier, more prosperous and more advanced. Gong xi fa cai,” the President Joko Widodo posted to his official social media page on Sunday (22/1/2023).

Lunar New Year was celebrated on Sunday by citizens across the world, from Saudi Arabia to the United States, without any restrictions, as the Covid-19 pandemic has begun to recede. Lunar New Year was also celebrated in Indonesia, not only by ethnic Chinese, but also other ethnic groups.

Also read: > Imlek, the Beginning of a New Life

> Chinese New Year and National Synergy

Vice President Amin also said the spirit of Lunar New Year would always be an opportunity to strengthen solidarity in realizing the vision of making Indonesia a more advanced and prosperous nation. Even though it was not easy, the Vice President encouraged the people to continue moving forward together.

"Once again, to my Confucian brethren and residents who celebrate, I wish you a Happy Lunar New Year 2574. May Almighty God always strengthen the harmony and brotherhood of the Indonesian people and shower us with strength and assistance," said the Vice President.

TANGKAPAN LAYAR

Screenshot, Vice President Ma'ruf Amin wishes Happy Chinese New Year 2574 Kongzili on his social media page, Sunday (22/1/2023).

Good fundamentals

Even though 2023 is perceived to be a difficult year, the Indonesian people are advised not to worry too much.

"Indonesia's economic growth this year is expected to be better than [that] in developed countries. Indonesia remains the choice of investors," Michael Tjoajadi, president director of PT Schroder Investment Management Indonesia, which manages funds totaling Rp 66.5 trillion (US$4.5 million), said during an interview in Jakarta on Thursday (19/1).

According Michael, Indonesia's economic fundamentals are quite good, as seen in its positive trade balance and other factors. The prices of some of Indonesia's leading export commodities have risen significantly in the past two years. In 2022, Indonesia recorded a trade surplus of $54.46 billion. The government's policy to ban raw commodities exports has also contributed to increasing the export value.

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"The [United States] Federal Reserve will not continue to increase its reference rate," Michael said. The Fed would take a less aggressive interest rate policy this year, and this would be followed by other central banks, including Bank Indonesia.

Even though economic growth is improving, a number of things need to be watched for, such as the normalization of commodities prices. This means that export figures may not be as high as the previous year.

China is Indonesia's main trading partner.

Katarina Setiawan, chief economist and investment strategist at PT Manulife Aset Manajemen Indonesia (MAMI), expressed similar optimism. According to Katarina, economies in Asia had generally shown improvement. The risk of recession in Asian countries is also low. The inflation rate is under control and the easing of China’s zero Covid-19 policy will have a positive impact on economies in the region, including Indonesia.

"China is Indonesia's main trading partner," she noted.

This year is also the year of preparing for the 2024 general elections. As before, there will be more money in circulation, which will in turn support consumer spending.

Some of this optimism is also reflected in the expansion and activities of major companies listed on the Indonesia Stock Exchange (IDX). As of 19 Jan. 2023, at least 45 companies had expressed an intention to be listed on the IDX, with an estimated Rp 49.5 trillion raised in total funds.

KOMPAS/IWAN SETIYAWAN (SET)

Chinese residents light candles and incense to pray to welcome the Chinese New Year at the Dharma Jaya Toasebio Temple in the Petak Sembilan area, Glodok, West Jakarta, Saturday (21/1/2023).

Year of the Rabbit

The Year of the Water Rabbit, which starts on 22 Jan. 2023 and ends on 9 Feb. 2024, is expected to be more serene than the last year’s Year of the Water Tiger. The Water Rabbit has the fire element with a little metal. That is the prediction from Hong Kong-based securities company CLSA in its humorous study on the Year of the Water Rabbit.

According to the analyst's presentation, the CLSA Feng Shui Index 2023 report states that industries related to fire, such as gas, fashion and technology, are expected to prosper this year. However, sectors related to property and water, such as travel and transportation, could struggle.

Meanwhile, feng shui master Ken Koh says in Maybank’s Water Rabbit report that the Year of the Water Rabbit will be calmer. In addition to the economic sector, this calm will also be felt in the political sector. Ken Koh also believes that metal elements will shine, such as the banking, mining, electric vehicle and automotive sectors.

Keep growing

Feng Shui expert Kang Hong Kian said there would be growth in the Year of the Water Rabbit. “The people ask, what will happen in the Year of the Water Rabbit? The water is back to normal, meaning it will grow. So, the recession is an exaggerated concern," Kang said in Jakarta on Monday (16/1).

Kang also acknowledged that he was angered by the frightening economic projections. "I hinted that they [produce views] in their own interests, because if you are confused, [upset], making money is easy. I'm not saying all economists are like that, but there are some,” he said.

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After the various problems and disasters over the last few years, Welly Muljono, owner of CV Welly Group, expected that Indonesia would get better. "Naturally, there are ups and downs in life, and in the year of the Rabbit, there will still be calamities and problems that affect the lives of many people," he said.

Meanwhile, Sumartono Hadinoto, a Chinese community leader in Surakarta, Central Java, said that businesspeople in the city’s Chinatown area were not pessimistic, despite the information on a potential economic recession.

He believes there will always be a way through all difficulties. Chinatown's economic resilience, for example, can be realized as long as it is willing to continue to innovate.

"Every time there is change, pressure, or things that make you uncomfortable, there is certain to be another opportunity that can be taken advantage of," said Sumartono. (WKM/JOE/ETA/NCA/ONG/RYU)

This article was translated by Hendarsyah Tarmizi.