Indonesian Economy Grows Positively, Coordinating Minister Airlangga: It Would Be Different If It Didn't Get Police Support

Coordinating Minister for the Economy Airlangga Hatarto and National Police Chief General Listyo Sigit Prabowo (Photo: Humas)

JAKARTA - Coordinating Minister for Economic Affairs, Airlangga Hartarto, said that the Indonesian economy managed to grow positively by 5.02 percent in Q4 2021, and the overall Indonesian economy in 2016 grew by 3.69 percent (YoY).

According to Airlangga, this achievement is the fruit of good cooperation in controlling the COVID-19 pandemic. Where this economic growth is also reflected in the growth of the JCI and the strengthening of the rupiah.

Then, said Airlangga, currently, the investment level has returned to the pre-covid level and several main sectors are still growing positively. The Consumer Confidence Index (IKK) is at an optimistic level reaching 119.6 in January 2022. PMI Indonesia Manufacturing is also at an expansionary level of 51.2 in February 2022.

"In addition, household consumption, processing industry, trade, agriculture, mining, and construction also grew positively", said Airlangga in an official statement, Wednesday, March 2.

Furthermore, the manufacturing sector grew because the Government provided automotive PPnBM facilities to drive the manufacturing sector. The construction sector also grew as a result of the Government's provision of Property VAT incentives which was continued until this year. The government has also decided to extend the 3 percent of People's Business Credit (KUR) subsidy to boost MSME productivity.

“Our economy depends on consumers, depends on the processing industry, government spending, and of course also related to investment. Those are some of the engines of growth for Indonesia", said Airlangga.

In taking advantage of this economic growth momentum, the Government decided to continue to encourage various national economic recovery programs, one of which is in the social protection sector through Cash Assistance for Street Vendors, Warung, and Fishermen (BT-PKLWN).

In 2021, almost 99 percent of the assistance has been distributed with the assistance of the TNI-Police. Based on this, Coordinating Minister Airlangga said that President Joko Widodo decided to redistribute the BT-PKLWN program with the assistance of the TNI-Police in 2022 with a different target, namely to tackle extreme poverty in 212 districts/cities.

"I express my gratitude and appreciation to all ranks of the National Police who have overseen economic policies as well as handling COVID-19 which I believe would be different if we did not get extraordinary support from the National Police Chief and his staff", said Coordinating Minister Airlangga.

Furthermore, Coordinating Minister Airlangga said that in 2022 the Government estimates economic growth to reach 5.2 percent. This growth can be achieved if the handling of COVID-19 goes well. Coordinating Minister Airlangga said that in a meeting with President Joko Widodo, the Government had prepared a transition roadmap from pandemic to endemic.

"In addition to being prepared related to the pre-health condition, we prepare also related to health services. But the activities that will drive economic growth need to continue to be encouraged because our momentum to grow higher is in 2022. We know that the projected growth in the world in 2023 is lower than in 2022, so the momentum for Indonesia to grow we must encourage and maximize in 2022", said Minister Airlangga.

Regarding Indonesia's economic transformation, Coordinating Minister Airlangga said that the Government continues to encourage the recovery of purchasing power and economic diversification by carrying out structural reforms.

"With structural reforms, now we are moving up to the upper-middle-income country, and of course, we hope that we can achieve escape from the middle-income trap between 2030 - 2035. The President will boost investment that will push us out of the middle-income country and in 2045 we become the top 10 countries of the world. Even if Indonesia is on the right track, it will be included in the 5 countries with the largest economies in the world", said Coordinating Minister Airlangga.

On this occasion, Coordinating Minister Airlangga also said that during the G20 Presidency, the support of all ranks of the Indonesian National Police was also needed to support the smooth running of the peak event which will be held in November in Bali.

"We need to convey the benefits of the G20 Presidency to the public that this moment has an impact on domestic consumption of 1.7 trillion rupiahs, increasing GDP by 7.4 trillion, and direct employment of 33 thousand, as well as providing economic benefits that exceed the IMF World Bank event. 2018 ago", concluded Coordinating Minister Airlangga.