Economic Growth Reaches 5.61%, Gov’t to Roll out Stimuli to Strengthen Exchange Rate

Minister of Finance Purbaya Yudhi Sadewa delivers a press statement at the Presidential Palace, Jakarta, on Tuesday (05/05). (Photo by: BPMI of Presidential Secretariat)

The Government reaffirmed its commitment to maintaining national economic growth, which has shown a significant acceleration. This statement was made by Minister of Finance Purbaya Yudhi Sadewa following a meeting with President Prabowo Subianto which was also attended by several ministers of the Red-and White Cabinet and the Financial System Stability Committee (KSSK), Tuesday (05/05), at the Presidential Palace, Jakarta.

Minister Purbaya stated that the positive trend indicates Indonesia’s economy is entering a stronger expansion phase. It also reflected the effectiveness of the Government’s policies in supporting economic recovery and accelerating economic growth.

“Today, Indonesia’s economic growth is recorded to reach 5.61 (percent). We have discussed with the President that our economy is shifting upward, from previously 5.39 (percent) to 5.61 (percent),” he said in his statement.

The Minister continued that the Government will maintain this momentum through several strategic policies, including stronger coordination with the central bank to maintain liquidity and the provision of additional stimulus measures to boost economic activities in the second quarter.

“Our economic growth is accelerating, and we will maintain this momentum in the second quarter through various policies,” he said, adding that the additional stimuli will be announced soon and disbursed on 1 June.

On that occasion, the Minister said that the Government has also prepared measures to strengthen the stability of the rupiah exchange rate by diversifying financing sources. One of the initiatives is the plan to issue Panda bonds in China at more competitive interest rates, which is expected to reduce dependence on the U.S. dollar.

“In order to strengthen the rupiah exchange rate, we will issue bonds, namely the Panda bonds in China with more competitive interest rates, so that we can reduce our dependence on the U.S. dollar. Thus, our diversification will become even stronger in the future,” he added.

These measures and policies are aimed not only at maintaining economic stability but also at boosting sustainable economic expansion. Amidst global uncertainties, Indonesia has continued to accelerate its economic growth, marking a solid milestone toward building a stronger and more resilient economy.  (BPMI of Presidential Secretariat) (RAS/TM)