COVID-19 Control Measures Key to Next Year’s Economic Recovery: Sri Mulyani

Minister of Finance Sri Mulyani delivers a statement after the handover ceremony of the budget implementation list (DIPA) at the State Palace, Monday (29/11). Photo by: PR of Cabinet Secretariat/Agung

Measures to control COVID-19 pandemic and enforcement of health protocols are key to economic recovery next year, according to Minister of Finance Sri Mulyani Indrawati.

“People’s consumption and production activities will solidify our measures to revive the economy in 2022,” the Minister said at the Presidential Office, Monday (29/11).

According to the Minister, the pandemic control has restored Consumer Confidence Index (IKK), Purchasing Managers’ Index (PMI), exports, imports, and electricity consumption.

“Our outlook for (economic) growth in 2021 is still at 3.5 to 4 percent of the GDP, sustained by demand side, especially investment, consumption and exports, as well as production side, especially manufacturing, trade and mining sector,” she said.

The Minister went on to say that financial market performance is also getting stronger, reflected by the strong state bonds (SBN), Stock Price Index and exchange rate, while rising inflation comes into play in shaping the policies formulated by the developed countries.

Sri Mulyani also underscored that the Government continuously uses the State Budget as an instrument to take counter cyclical measures in a measurable manner.

“The results are evident in our stronger economic recovery compared to that of our our peer group in the ASEAN and in the G20, our relatively small State Budget deficit, as well as our relatively lower public debt to GDP ratio compared to that of our peer groups in the G20 and the ASEAN,” she said, adding that the State Budget is also used as an instrument to stimulate national economic recovery.

“The President has stated that we will continue to carry out structural reforms to accelerate economic recovery and strengthen our economic fundamentals,” the Minister said.

The former World Bank managing director further said that Ministry of Finance and central bank Bank Indonesia will continue to join hands in maintaining economic stability, exchange rates, inflation, and sustainability in financing.

“We will continue to maintain our financing in the face of next year’s global situation, including high inflation and commodity prices,” she remarked. (FID/UN) (RI/EP)