The Minister of Industry is Optimistic that the Economy Will Grow 5.5 Percent in 2021

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The Minister of Industry is Optimistic that the Economy Will Grow 5.5 Percent in 2021

Sunday, 3 January 2021

Minister of Industry Agus Gumiwang Kartasasmita (Photo: Documentation of Public Relations of Setkab)

 Minister of Industry Agus Gumiwang Kartasasmita said he was optimistic that Indonesia's economic growth in 2021 would reach 5.5 percent.  This optimism cannot be separated from the entire series of strategies and policies that have been prepared by the government in order to accelerate efforts to recover the national economy (PEN) due to the COVID-19 pandemic.

 "With various combinations of policies and opportunities that we take advantage of optimally, it is hoped that the Indonesian economy can grow around or in the 4.5 to 5.5 percent range in 2021," he said in a written statement, Sunday (03/01/2021).

 The Minister of Industry emphasized that the government's determination to pursue an economic growth rate of 5.5 percent in 2021 is in line with the growth projections made by international institutions.

 The Organization for Economic Cooperation and Development or the OECD projects that the global economy in 2021 will grow by 4.0 percent.  Meanwhile, the Asian Development Bank or ADB estimates the figure is 5.3 percent and the International Monetary Fund or IMF is aiming for 5.2 percent.

 In addition, the World Bank predicts the global economy next year will be in the range of 4.4 percent, and Bloomberg Median has set a target of around 5.6 percent.

 "Meanwhile, for the outlook for the State Budget, the growth has been set at 5.0 percent," said Agus.

 The Minister of Industry said several strategic steps were taken by the government to accelerate national economic recovery in the next year, including procuring and administering vaccines to the public.

 "The game changer for national economic recovery during a pandemic is the implementation of vaccination itself," he said.

 Apart from vaccinations, the key to driving national economic growth in 2021 also includes the implementation of the Job Creation Law.  Then, the implementation of the PEN program which has been intensified in 2020.

 "In addition, we always prepare a number of other strategies, one of which is by continuing the existing programs in the PEN Committee or handling COVID-19," he explained.

 As a step to accelerate economic recovery, the government will also continue to support policies for empowering the micro, small and medium enterprises (MSMEs) sector.

 "Not only that, the government will compile a list of investment priorities (DPI) and establish an investment management institution or LPI," said the Minister of Industry.

 As for other economic growth levers, are the food security program, industrial estate development, mandatory B30, and labor intensive programs.  "Of course, what is no less important is the digital economy development program," he said.

 Agus stated that optimism in taking advantage of the opportunities for economic recovery is based on the economic recovery strategy through policies and programs that have been formulated by the government.

 "Of course, synergizing with all stakeholders is absolute, so that national economic growth will revive more quickly in 2021," he said.

 The Minister of Industry added that Indonesia has sufficiently strong capital to spur economic recovery in 2021. This is in line with global economic conditions which show signs of improvement amid the threat of the second wave of COVID-19.

 "The strong capital that Indonesia has is related to economic recovery efforts," he said.

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

 "This indicates optimism in the business sector regarding future economic conditions," he explained.  (MINISTRY OF PROVISIONS / UN)

By Public Relations
 Published on January 3, 2021