Minister: Economy Recovers Faster Than 1997-1998 Crisis

By Office of Assistant to Deputy Cabinet Secretary for State Documents & Translation     Date 16 Desember 2021
Category: News
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Minister of Finance Sri Mulyani (Photo by: PR of Ministry of Finance)

Indonesia managed to recover from the COVID-19 pandemic faster than the 1997-1998 crisis, Minister of Finance Sri Mulyani Indrawati has said.

“If you look at it and compare it to the situation when Indonesia faced the crisis in 97-98, it took four years to restore our economy to pre-crisis GDP level. For this COVID-19 [pandemic], within a year and a half, we have been able to return to the pre-COVID-19 GDP level,” the Minister of Finance said at the Working Lunch: Joint Side Event of Sherpa Track and Finance Track of the G20 Indonesia Presidency, Wednesday (12/15).

According to the Minister, the rapid recovery was due to the resilience of the financial sector and business world, as well as responsive government instruments and policies. “This is something that we should all be grateful for and proud of, but this means that our task has not yet been completed,” she said.

In terms of job creation, the unemployment experienced a decline in the last 12 months. The unemployment rate can be reduced to 6.5 percent, after soaring above 7.1 percent.

“These steps of economic recovery are expected to be felt directly by the community,” said the Minister.

She expressed hope that these achievements will become capital in 2022 when Indonesia hosting a series of G20 activities, including Finance Track and Sherpa Track.

“We hope that this will generate optimism and synergy so that Indonesia will not only be successful in hosting the G20 Presidency but will also be successful in demonstrating Indonesia’s economic recovery and good handling of COVID,” she stated.

The State Budget as a fiscal instrument will continue to provide support to overcome the pandemic, provide social protection, and accelerate economic recovery, but gradually carry out fiscal consolidation.

“We hope that the momentum of economic recovery will strengthen and the State Budget will also begin to recover, so that in 2022, we hope that the economic recovery will be accelerated and the State Budget will also be gradually consolidated,” she said. (PR of Ministry of Finance/AIT) (FI/MMB)

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