Sri Mulyani Is Optimistic That Indonesia's Economy Next Year Will Grow 5 Percent: Don't Let There Be Brakes In 2024

Minister of Finance Sri Mulyani (second from the left). (Photo: Aris Nurjani/VOI)

JAKARTA - Finance Minister Sri Mulyani Indrawati is optimistic that Indonesia's economic growth will be at the level of 5 percent by 2024.

This was driven by several sentiments for the Indonesian economy next year, one of which is the geopolitical situation which is expected to subside.

"God willing, Indonesia's economy can grow 5 percent until 2024," said Sri Mulyani in the 2024 Indonesian Economic Outlook agenda, Friday (22 December).

Sri Mulyani explained that the first sentiment stems from the global economic situation which is expected to subside by several international institutions.

"For America, it seems that there is hope because the resilience of the economy until the end of the year is visible. So that the world's largest economy can survive the extraordinary increase in interest rates. So, this gives us hope that at least optimism will appear, meaning that the worst shock from the increase in interest rates has been passed," he said.

The next sentiment comes from the government's efforts to maintain domestic demand because middle class consumption is an indicator for the growth of gross domestic product (GDP), so that the government continues to strive to maintain inflation and increase food prices.

"That's why there are various series of policies we had yesterday. Whether it's for the purchase of houses, buying cars, this is all intended so that in terms of supply side. The problem is that the property and construction have a large multiplier effect. From the middle group side, we see that they still have purchasing power, they are starting to be motivated to be able to," he explained.

Sri Mulyani said that investment and bank credit grew well and will continue until next year. And it is hoped that nothing will interfere with the economy in 2024.

"Investasi sekarang sudah tumbuh cukup baik. kalau kita lihat credit growth perbankan juga cukup baik, namun belum setinggi yang kita harapkan maka jangan sampai pada 2024 ada sedikit ngeram," jelasnya.

Meanwhile, Indonesia's tax growth is still high. Although tax growth contracted 18 percent during the COVID-19 pandemic.

Sri Mulyani explained that currently the government is still maintaining the momentum of tax-based economic growth.

"The growth in our tax revenues this year is still 7 percent, so it's quit dependent baseline has gone up very high. This will cause a tax ratio to improve, and then we focus on spending will be better even though this is President Jokowi's last year," he concluded.