Indonesia’s Economy Starts to Improve, Sri Mulyani Says

Minister of Finance Sri Mulyani Indrawati (Photo: PR of Ministry of Finance)

Indonesia’s economy is beginning to show recovery in the third quarter, Minister of Finance Sri Mulyani has said.

“In terms of production, the turning point for the economic recovery can be seen in the third quarter in almost all sectors, meaning that Indonesia has passed ‘the worst’ condition that happened in the second quarter. And now we are in the recovery stage,” she said in a press conference on Thursday (5/11).

In the meantime, from the consumption side, she noted that the Government spending on the State Budget as a countercyclical strategy has contributed to restoring the economy in the third quarter for the components of government spending, household consumption through social assistance, and subsidies and investment through capital expenditure.

According to the Minister, as a countercyclical instrument, the State Budget spending has provided significant results in the third quarter, adding that the state expenditure has contributed to the recovery of economic growth in the government consumption component.

“The Government has also contributed to the household consumption component through spending on social assistance and subsidies and investment component through capital expenditure,” she said adding that this condition also shows the critical role of the State Budget to rebuild the economy from the consumption sector through social assistance, government consumption and investment. (PR of Ministry of Finance / UN)

Translated by: Estu Widyamurti
Reviewed by: M. Ersan Pamungkas