Indef: Government Must Pay Attention To Sectors That Have Not Recovered For Economic Recovery

Head of the Center for Industry, Trade and Investment Indef, Andry Satrio Nugroho. (Photo: Doc. Antara)

JAKARTA - The Institute for Development of Economics and Finance (Indef) said that since the pandemic until the current recovery period, there are still industries that have not recovered.

These sectors need attention for national economic recovery.

Head of the Center for Industry, Trade and Investment of Indef, Andry Satrio Nugroho said the government needs to map which sectors have not recovered. Then,

provide incentives for industries affected by the pandemic and the weakening of the world economy.

"When asked about how we can protect the manufacturing sector, it is necessary to look again at which sectors were quite affected by the past COVID-19 and until now there has been no visible recovery and this is what the Ministry of Industry has to map out," said Andry, Friday, January 20.

According to Andry, so far the government has not provided stimulus to sectors that have not recovered from the impact of the pandemic and the weakening of the world economy.

"If we look at the mapping of the sub-sectors that are still affected and have not recovered sufficiently, the stimulus given is still not there, in my opinion. There is still nothing new, now this is what I think needs to be reminded again to the government," explained Andry.

For example, said Andry, the textile and footwear industry. They were very affected and have not recovered until now. This industry was battered by imported products and also decreased demand from abroad.

"Apart from that, high inflation has not been able to recover the performance of the domestic industrial sub-sector which is already export-based. Maybe if I could say the majority of exports are such as apparel textiles, footwear, and so on," said Andry.

Andry said, when the government knows which industries can be saved, then extra effort must be given to them. Unfortunately, Andry assesses that so far many policies have not been on target.

"One of them, maybe if we can mention it like electric cars, facilitating subsidies from electric cars and motorcycles, it's solely not profitable for the industry, but instead it benefits dealers and also car and motorcycle traders," said Andry.

Because of this, Indef asked the government to pay special attention to affected industries, apart from of course exploring export and downstream potential.

"Again, what is actually being pursued, and what is prioritized this year," said Andry.

Previously, the Coordinating Minister for the Economy Airlangga Hartarto said the government remained optimistic, alert, and anticipatory.

The government is also preparing various strategies and policies so that the economic growth target of 5.3 percent (yoy) in 2023 can be achieved.

"If we talk globally, there are still dark clouds globally, even the Managing Director of the IMF said that Indonesia is the bright sight in the dark. So, of course, Indonesia hopes, because we have resilience during the handling of the COVID-19 pandemic, it also hopes to have resilience in 2023," said the Coordinating Minister for Airlangga.

To maintain the performance of the manufacturing sector, the Coordinating Minister for Airlangga said that the government needs to be optimistic, maintain demand, and follow up on downstream and ecosystem development in the manufacturing sector.

Meanwhile, from the real sector, said Airlangga, the government will improve the performance of export-oriented industries which are increasingly competitive.