Industry Ministry Upbeat Indonesia’s Economy Will Grow 5.5 Percent This Year

Industry Minister Agus Gumiwang Kartasasmita (Photo by: Documentation of Cabinet Secretariat PR)

Minister of Industry Agus Gumiwang Kartasasmita has expressed optimism that the country’s economic growth will reach 5.5 percent this year thanks to strategies and policies set by the Government in speeding up efforts to rebuild national economy in the throes of the COVID-19 pandemic.

“Through various policies and opportunities, we hope the economy can grow around or in the 4.5 to 5.5 percent range this year,” he said in a written statement, Sunday (03/01).

The Minister also pointed out that the Government’s determination to pursue an economic growth rate of 5.5 percent this year is in line with the growth projections made by international institutions.

The Organization for Economic Cooperation and Development (OECD) has projected that global economy will grow by 4.0 percent this year, the Asian Development Bank (ADB) is at 5.3 percent, and the International Monetary Fund (IMF) is at 5.2 percent.

Moreover, the World Bank has projected that global economy will be in the range of 4.4 percent and Bloomberg Median has set a target of around 5.6 percent.

“As for the outlook for the State Budget, the growth has been set at 5.0 percent,” he said, adding that several strategic measures have been taken by the Government to speed up national economic recovery, including procuring and administering vaccines to the public.

“The game-changer for national economic recovery during a pandemic is the vaccination itself,” he said.

Apart from vaccinations, the key to driving national economic growth this year includes the implementation of the Job Creation Law and the implementation of the national economic recovery (PEN) program which was intensified in 2020.

“We always prepare a number of other strategies, one of which is by continuing the existing programs in the PEN or the COVID-19 handling Committee,” he said.

The Government, he added, is also set to support policies for empowering the micro, small and medium enterprises (MSMEs) sector, adding that the Government will compile a list of investment priorities (DPI) and establish an investment management institution or LPI.

Other economic growth levers, he continued, include food security, industrial estate development, mandatory B30, labor-intensive, and digital economy development programs.

“Partnering with all stakeholders is crucial so national economic growth will revive more quickly this year,” he said, adding that Indonesia has sufficiently strong capital to spur economic recovery.

The Minister further said that economic recovery can already be seen, for example, from manufacturing activity in developed and developing countries, which shows an expansionary phase, he said, adding that manufacturing stretches have also occurred in Indonesia, driven by increased industrial differentiation.

“This brings optimism in the business sector regarding future economic outlooks,” he said. (Ministry of Industry PR/UN) (MUR/EP)